Pavement Maintenance & Reconstruction January 2018

THE OFFICIAL MAGAZINE OF NATIONAL PAVEMENT EXPO

How to Keep Crews Safe in Winter

MAINTENANCE & RECONSTRUCTION JANUARY 2018

11

Ways to Strengthen Your Company’s Backbone – Your Office!

TKG Environmental Services Seizes

GROWTH

Opportunities Why Leaders Should Be

“ON A MISSION”

Special Report: Infrared Is Heating Up! › › › www.ForConstructionPros.com/Pavement

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Driveway Start-up Pro-Pave Making its Commercial Market Mark Speedy Striping

CRUSHES

Expectations with Colored Glass in Crosswalks CTLs are Selling but Skid Steers Still Essential Tool

1/2/18 1:13 PM

STOP

THE PLACE TO GO FOR PAVEMENT PROS

One STOP Shop is the place to go GemSeal’s One Stop Shops have everything you need to complete your job in just one trip – products, equipment, and professional advice.

It is our mission to provide everything you need to get the job done!

Visit a GemSeal One Stop Shop and see why it’s The Place to Go for Pavement Pros™. We also ship nationwide or you can stock up on GemSeal products at a distributor near you.

One Stop Shop locations: Atlanta, GA

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Norcross, GA

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Oklahoma City

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Tampa, FL

813-630-1695

Worcester, MA 508-419-7710

Booth 416 gemsealproducts.com • 866-264-8273 Superior Products & Equipment for more than 60 Years Pavement is Our Passion!® ForConstructionPros.com/10073088

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What’s Inside January 2018

PAVEMENT FEATURES 16

Sweeping Corp. of America Sees National Sweeping Potential Private equity-backed SCA plans to bring efficiencies, career operators and improved service to sweeping industry.

30 How Pro-Pave

Achieved Sustained Growth

Speedy Striping uses epoxy, colored glass aggregate to create diversity intersection.

24 Is Your Office Staff

the Backbone of Your Company?

It should be – and here’s how to make it happen.

Sweeping Company

Rainbow Crosswalks in Arizona

Skid Steers Maintain Strong Market Momentum

34 How to Transform a

20 Installing

Virginia driveway paver adds concrete, expands into commercial work and highlights customer service.

62 Contractors’ Choice:

TKG Environmental Services develops core values, puts “the right people” in place, and demands accountability.

40 Special Report:

The Infrared Process Regains Its Reputation

Equipment manufacturers have revitalized a valuable pavement repair tool – and the future is heating up.

While sales of compact track loaders now outpace skid steers, manufacturers anticipate continued succcess for the wheeled machines.

68 How to Make

Google AdWords Work for You

Select and use keywords correctly – and don’t skimp on your budget.

71

Tips for Safe Winter Operations

How to manage your workers and jobsite in winter conditions.

ON THE COVER Crews for Trace Infrared Asphalt Restoration, Eunice, LA, rely on a Kasi Infrared Corp. 3-ton, truck-mounted Patriot unit for infrared repairs.

Available in models that can store either 2, 3, 4, 5 or 6 tons, the Patriot is entirely hydraulic, features a 6-ft. x 8-ft. dual infrared chamber, and carries all tools and equipment needed for infrared restoration. Photo courtesy Kasi Infrared Corp., Claremont, NH.

Vol. 32, No. 3 January 2018

Published and copyrighted 2017 by AC Business Media Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher.

PAVEMENT

Subscription policy: Individual subscriptions are available without charge in the U.S. only to pavement maintenance contractors, producers and government employees involved in paving or pavement maintenance; dealers, and distributors of pavement maintenance equipment or materials; and others with similar business activities. Complete the subscription form at www. forconstructionpros.com or use your company letterhead giving all the information requested. Publisher reserves the right to reject nonqualified subscribers. One year subscriptions for nonqualified individuals: $35.00 U.S.A., $60.00 Canada and Mexico, and $85.00 all other countries (payable in U.S. funds, drawn on U.S. bank). Single copies available (prepaid only) $10.00 each (U.S., Canada & Mexico), $15.00 each (International). Pavement Maintenance & Reconstruction (ISSN 1098-5875), is published eight times per year: January, February, March/April, May, June/July, August/ September, October/November, December by AC Business Media Inc., 201 N. Main St., Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, WI and additional entry offices.

POSTMASTER: Please send change of address to Pavement, PO Box 3605, Northbrook, IL 60065-3605. Printed in the USA. Canada Post PM40612608. Return Undeliverable Canadian Addresses to: Pavement Maintenance & Reconstruction, PO Box 25542, London, ON N6C 6B2.

PAVEMENT MAINTENANCE & RECONSTRUCTION is proudly supported by these associations:

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What’s Inside January 2018

8

DEPARTMENTS 6

Editorial

8

Hot Mix

Timing is Right for Managing Your Business 18

The Latest News in the Industry

10 Just In

Select New Products and Upgrades 12 NPE Buzz

Conference Sessions Aimed at Issues Contractors Likely to Face in 2018

12

84

14 2018 Top Contractor Survey

48 Pavement Profit Center 73

Classified Ads

22

82

82 On the Job

Fine-tuning Driveway Edges 83 From the Owner’s

Back ‘er Up, Nick!

Desk

84 Your Business Matters

How to Combat Rising Rental and Used Equipment Costs 42

85 NAPSA Report

NAPSA at NPE 2018 85 WSA Update

Saying “No!” Starts at the Top 86 PCTC Dispatch

Sealcoating Safety: Fact vs. Fiction 87 Technology Update

How Connected Vehicles Make Work Zones Safer 88 Contractor Snapshot

Affordable Paving & Excavating Targets GCs, Adds Services & Sweats the Small Stuff 89 Index 90 Tailgate Talk

You Can Be a “Leader on a MIssion”

12

87

Get fast, relevant product information in the Buyers Guide at ForConstructionPros.com

4 January 2018 • PAVEMENT • www.ForConstructionPros.com/Pavement

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TRUSTED ON SOME PRETTY IMPORTANT PAVEMENT...

VISIT US AT NPME FEBRUARY 8-10 • BOOTH 402

Elgin® is the Official Sweeper of NASCAR® Green Whether sweeping some of the most well known race tracks in America or cleaning the streets in your neighborhood – Elgin sweepers have a reputation for performance, reliability, durability. With over 100 years of experience, a full line of sweepers for every application, and industry-leading green technology – Elgin can always be trusted to get the job done, and take care of the environment along the way.

Visit elginsweeper.com to learn more about Elgin’s trusted performance – or tune into any NASCAR race to witness it for yourself.

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www.elginsweeper.com 847-741-5370 ©2017 Elgin Sweeper Company

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Editorial Allan Heydorn, Editor

Timing is Right for Managing Your Business MOST CONTRACTORS START a paving or pavement maintenance business because they are skilled in some aspect of construction.

Tom Shumate, however, started Affordable Paving & Excavating (see page 88) with no construction skills. He knew how to run a business, and he figured he could transfer those management skills to a paving operation.

But most contractors don’t have that business background and often find themselves facing issues they didn’t expect and aren’t

sure how to handle. That’s why each year we focus our January issue on business management, because you can be the best contractor out there but if you can’t run a business you won’t be around long enough to prove it. This year we tackle management from a variety of viewpoints: • Marketing – “How to Make Google AdWords Work for You,” page 68 • Growth and diversification – “How Pro-Pave Achieved Sustained Growth,” page 30, and “How to Transform a Sweeping Company,” page 34

• Office operations – “Is Your Office Staff the Backbone of Your Company?” page 24 We also cover safety, equipment to impact your operation, and equipment financing. And we introduce a new column by Advisory Board member and National Pavement Expo speaker Nick Howell, T & N Asphalt Services, on the view “From the Owner’s Desk,” page 83.

Contractors are so busy from season start to season end that for many the dead of winter is about the only time they have to reflect on

where their business stands, plan for the short and long term, and confront some of the inevitable challenges all businesses face as they grow.

We know the timing of this issue is right; we hope the insights help too.

And don’t forget NPE (www.nationalpavementexpo. com), Feb. 7-10 in Cleveland, with more than 25 management sessions.

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6 January 2018 • PAVEMENT • www.ForConstructionPros.com/Pavement

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s

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Hot Mix

SealMaster Opens Operations in Utah, Idaho

Utah franchise owner John Moody said he wanted to buy the territory before it was scooped up by someone else. “We’re glad to invest in our home state and contribute to the economy here,” he said.

SealMaster, a global supplier of pavement maintenance supplies and equipment, has opened two new facilities in the western United States. Both facilities feature a manufacturing plant, distribution center and retail showroom.

Kevin McEntree opened his SealMaster franchise in June in Boise, ID, serving the state of Idaho.

With his sights set on owning a business he could establish and operate in Boise, McEntee researched a number of entrepreneurial opportunities. After several meetings with SealMaster franchise representatives, he determined a SealMaster franchise was the perfect fit for Idaho. “I researched the pavement maintenance and preservation market for two years and saw how so many contractors were related, directly or indirectly, with pavement maintenance.”

Having the business based in Boise was a critical point for the third-generation Idahoan. “It’s an important place to me and I love

the idea of supplying locally produced products,” he says. “In search for consistency and quality, many contractors are sourcing products from all over the Western U.S. We look forward to becoming a local solution for them. Also, I look forward to becoming involved in a variety of community causes and providing cost-saving solutions to our Idaho municipalities and school districts.”

McEntee says Idaho road maintenance agencies are in step with the nationwide trend of preserving paved assets. “When people have available quality, consistent products that perform well, it’s an extremely good value to preserve pavement—a substantial capital asset,” he asserts. “Idaho’s harsh winters really underscore that strategy.

It’s the approach of protecting investments and increasing the service life of asphalt.”

The Idaho SealMaster is located at 6438 S. Supply Way in Boise.

The new West Valley City, UT, location, owned by Lyle Moody, will serve the entire state of Utah. This is Moody’s second

6th Sweeper Summit Offers Equipment More than 120 member partners and 20 manufacturing vendors attended the 6th Annual Sweeper Summit Nov. 8-10 in San Antonio, TX. The Summit, hosted by 1-800-SWEEPER, a nationwide service network of independently owned power sweeping companies, featured Mike Pierce, better known as “Antarctic Mike,” as the event’s keynote speaker. Pierce delivered a message on how to develop companies and employees. He used his business experiences, as well as his personal experiences in polar expeditions and marathons, to outline practical ways CEOs and managers can recruit and retain quality employees. He also shared life experiences in sales and endurance sports to motivate executives in growing their businesses. For the first time the Summit also featured equipment displays in addition to training in industry-specific benchmarking.

SealMaster franchise; he has owned SealMaster/Honolulu for 14 years. The new business is located off Highway 201 at 6778 West 2100 South.

Moody officially opened the Utah business in 2016 while simultaneously renovating a combined 13,000-sq.-ft. warehouse, office space, and showroom; building a 5,500-sq.-ft. addition; and training new employees. Members of the family who live in Utah serve in key leadership positions.

Moody’s son, former Hawaii plant manager John Moody, relocated to Utah and serves as vice president. Son-in-law Shawn Ormond, who had worked for SealMaster/Honolulu for more than five years, now lives in Utah and manages operations.

RoadSafe Acquires Beth’s Barricades RoadSafe Traffic Systems, a provider of traffic control and pavement marking services with more than 50 U.S. locations, announced it has acquired Beth’s Barricades, Pittsburgh, PA. Founded in 2005, Beth’s Barricades serves Pennsylvania and Maryland, providing traffic control services including traffic signals, message and arrow boards, speed trailers, truckmounted attenuators and steel barriers along with smaller items such as channelizers and signs.

“The addition of Beth’s Barricades supports our strategy of expanding our service offerings,” said David Meirick, president and CEO of RoadSafe.

“Beth’s Barricades has built a robust infrastructure to support its business operations and earned a solid reputation with contractors across the area for its expert staff, service and cutting-edge product lines.”

8 January 2018 • PAVEMENT • www.ForConstructionPros.com/Pavement

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Heyer Named ODB President Greg Heyer has been named president of Old Dominion Brush Company Inc. (ODB) effective December 4.

Heyer joined Schwarze Industries in as vice president of sales, marketing, customer service and product management.

“His initiatives to rebrand Schwarze products, improve customer support, develop the dealer network, foster product innovation, and strengthen dealer relationships, were key to driving Schwarze’ performance over the past several years.” said Howard May, president of Schwarze Industries Inc. The Old Dominion Brush Company (ODB), headquartered in Richmond, VA, has been manufacturing municipal products since 1910 and produces street sweepers and leaf vacuum equipment at a 200,000-sq.-ft. manufacturing facility. ODB offers a large inventory of street sweeper parts, brooms, and leaf vacuum parts and hoses.

Bomag Opens Workshop & Training Center in Germany As part of its week-long “Innovation Days” last September, conducted in Bomag’s new demonstration and training center in Germany, Bomag’s 1,200 guests from 60 countries were able to see Bomag products in action, including a tandem roller deomonstration.

Industry Appointments Shawn Sweet is vice-president, sales & marketing, at Bomag Americas Inc., Ridgeway, SC...

Also at Bomag, Tim Collie is national account manager, Rental for North America.

At Neyra Industries, Cincinnati, OH, Travis Parrish is regional sales manager covering the Mid-Atlantic territory.

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Just In 1

2

3

Get fast, relevant product information in the Buyers Guide at ForConstructionPros.com 1

2

3

New Line of Asphalt Pavers

X-10 Pavement Sealer

New CC1100/CC1200 Roller Range

Ammann America Inc. A new line of asphalt pavers is for applications from paths to city streets to wide lifts for roadways and airports.

•• The paving line includes 17 models, with tracked and wheeled versions available in three major size groups: compact pavers (including the mini paver), city pavers and large pavers •• Compact pavers have production capacities of 300 tph •• The four city paver models can place 350 tph •• Large pavers can reach 1100 tph

The Extendit Company X-10 Pavement Sealer is a contractor grade colloid-milled coal tar pavement sealer.

•• Meets or exceeds Federal Specifications •• Protects asphalt against harmful effects of sunlight, rain and oil and gas spills •• Extends pavement lifecycle •• Available in 5 gal. pails, 55 gal. drums and bulk tanker shipments

Dynapac USA The CC1100/CC1200 VI rollers are designed to meet the construction industry’s tough conditions with the operator in mind resulting in a robust, comfortable and modern machine.

•• Sliding seat of 8.3 in. and engine hood design ensure optimal visibility over the front of the drum •• Available mechanical adjustable offset function provides up to 2 in. off offset to the rear frame •• Tapered drum edges result in a smooth surface without marks •• Efficient eccentrics deliver a powerful performance in vibration startup process

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10 January 2018 • PAVEMENT • www.ForConstructionPros.com/Pavement

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Effective Pothole Solutions

HP ASPHALT COLD PATCHTM Fast, easy, cold-applied; 2-7 times longer life than AC hot- or cold-mix; apply in all temperatures, in dry or wet conditions; 1-person crew; no mixing, heating or special equipment.

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MAGNUM SPRAY INJECTION PATCHERTM Aggregate coated by asphalt emulsion; service life of 2-5 years; open to traffic in minutes; apply in all temperatures, in dry or wet conditions; 2-person crew no compaction required.

MASTIC ONETM Prepackaged, hot applied, polymer modified asphalt with engineered aggregate; service life 5+ years; open to traffic in minutes; apply in all temperatures, need dry conditions; 2-person crew using Patcher; no compaction required.

World of Concrete • January 23-26 • S11907 National Pavement EXPO • February 7-9 • 1609, 1409 World of Asphalt • March 6-8 • 3016

To extend pavement life and save money contact us: sales@crafco.com crafco.com 800.528.8242

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1/2/18 1:28 PM

NPE Buzz Allan Heydorn, Editor

NPE Cleveland: Targeting 2018 Conference sessions are aimed at issues contractors are likely to face this year NATIONAL PAVEMENT EXPO’S conference program touches on virtually all aspects of running a paving and pavement maintenance business. But a number of this year’s sessions deal directly with concerns contractors will likely face in 2018. So here’s a hand-picked list of just a few of the sessions that might help contractors thrive this year:

Employees What’s the most-common concern of today’s contractors?

Arguably labor. Where can I find more good workers and how can I keep them once I find them. Tom Eosso, Eosso Brothers Paving, and Tyler Spano, Intercounty Paving Co., will explain what has worked for them in Improve Your Company Culture to Attract, Grow and Retain the Best Workers. These two contractors “will discuss how they have worked together to

COME TALK SHOP! Announcing the NEW Pavement Guru Forums.

Talk shop with contractors and industry professionals.

Check them out and register at www.pavementguru.com

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improve their cultures and how they have developed a path for employee growth and retention that starts with the hiring process. Contractors will learn how to implement a skills test for new hires and develop a ‘skills pyramid’ that lays out a clear path for employees to develop and progress at their own pace.”

And once you’ve hired them, how do you get them to buy-in to your mission and produce as a team? Brad Humphrey, Pinnacle Development Group, will explain How to Make “Quality” Your Employees’ #1 Obsession, outlining steps to take that will make a company more “quality based,” including steps on enlisting employees to “buy in” to producing quality.

Giselle Chapman, Chapman Business Solutions, will tackle teamwork in a three-hour workshop, Team-building for Contractors: How to avoid the “Silo Syndrome.” Her “team-integration” approach suggests that not only must team members work together but teams themselves – sales, field, office, management etc. – must work with each other. If any individual team works only in its own “silo” they block the coordination of all teams and the company can’t achieve the job quality, customer satisfaction – and profit – every contractor pursues.

The Law But working with employees isn’t the only aspect of labor to influence your company. Labor law plays a daily role and Martin B. Heller, Fisher & Phillips LLP, will cover that in “Trumped Up” Terminations – A Labor and Employment Year in Review, and What to expect for 2018. Heller will outline the impact the current administration has had on labor and employment law. He’ll review key cases and regulatory changes from 2017 – and explain how those cases will impact your operation – in the areas of wage and hour law under the Fair Labor Standards Act; harassment and discrimination law under Title VII, the Americans with Disabilities Act, the Family and Medical Leave Act and the Age Discrimination in Employment Act. Possibly the most impactful session for contractors will be Risk Management and Error Recovery Tools to Protect Your Company, presented by Joshua G. Ferguson, litigation and general counsel attorney, Freeman Mathis & Gary, LLP. That’s because there are few contractors who haven’t been dragged into a lawsuit for no reason other than they worked on property. Ferguson will present steps you can take to manage your risk to deter litigation, recover from mistakes, and to better defend your company should litigation occur.

For details of National Pavement Expo, Feb.7-10 in Cleveland, including complete seminar descriptions, visit www.nationalpavementexpo.com.

12 January 2018 • PAVEMENT • www.ForConstructionPros.com/Pavement

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IN

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PAVEMENT 2018 Top Contractor Survey WELCOME TO THE Pavement Maintenance & Reconstruction survey of paving & pavement maintenance contractors. Our hope with this survey is to develop verifiable Top Contractor listings in each of five industry segments: Paving, Sealcoating, Striping, Sweeping and Pavement Repair. To do that we need to know: • Gross Sales Volume for your fiscal year 2017 (regardless of the date that fiscal year ended) • A breakdown by percentage of the type of work that generated those 2017 sales

• Third-party verification of that sales total (see additional explanation at the end of the survey) To determine whether a company qualifies for one (or more) of our five lists we will multiply your total 2017 sales dollars by the percentage of work done in each industry segment. For example, if a contractor reports $1 million in 2017 sales and generated 40% of those sales from striping, the number used to determine qualification for the Striping Top Contractor List would be $400,000 ($1 million x 40%).

Name & Title of Person Completing This Form *First _______________________ Last_______________________________

CONTRACTOR

TOP

2018

Top Contractor Survey

2018

TOP

CONTRACTOR

Note: No sales figures will be reported or published; sales figures will be used only internally for determining each list. Also, no contractor will be eligible for the list without third-party verification of your Fiscal Year 2017 Gross Sales Volume.

There are 3 ways to complete and submit this form: • Online at https://www. surveymonkey.com/r/ TopContractor2018

• Complete a hard copy and fax (920-542-1133) or mail it to: Pavement Maintenance & Reconstruction, Top Contractor Survey, 201 N. Main Street, Fort Atkinson, WI 53538; Attn.

Jessica Lombardo.

• Complete a hard copy, scan and e-mail to aheydorn@ ACBusinessMedia.com Thanks very much for your participation. We do appreciate it.

DEADLINE: April 23

5. * What percentage of your fiscal year 2017 Total Gross Sales is generated by working as a subcontractor for other contractors? ___________________

E-mail _______________________ _Phone _____________________________

6. * Do you self-perform more than 50% of your work?

*Company Information Company Name (as you would like it to appear on the magazine) ______________________________________________________________ Street Address _________________________________________________ City State Zip Code _____________________________________________ Phone Number with Area Code ___________________________________ Website _______________________________________________________ Years in Business _______________________________________________

7. What was your overall company-wide profit margin in FY 2017? (Not for publication; results will be presented for the industry as a whole.) ______ Less than 3% ______ 5%-10% ______ More than 15% ______ 3%-5% ______ 10%-15%

Please indicate your number of employees at peak season (If employees fulfill more than one function please include them in the category they perform most often): ______ Management ______ Field Supervisors ______ Laborers ______ Office Staff ______ Sales May we contact Your Company by e-mail? ____Yes

___No

1.* What is your company’s Total Gross Sales for your Fiscal Year 2017?

___________________________________________________________

___Yes

___No

8. How many different customers did you work for in FY 2017? ______ Fewer than 100 ______ 151-200 ______ 301-400 ______ 101-150 ______ 201-300 ______ More than 400 9. How many different jobs did your company complete in FY 2017? ______ Fewer than 100 ______ 151-200 ______ 301-400 ______ 101-150 ______ 201-300 ______ More than 400 10. What is the estimated replacement value of your equipment fleet (including trucks)? ______ Less than $250,000 ______ $1 million - $2 million ______ $250,000 - $500,000 ______ More than $2 million ______ $500,000 - $1 million Signature ______________________________________________________ Title (please print) _______________________________________________

(This figure used internally for listing purposes only; it will not be published.) Please round to whole dollar amounts. (Example: 1,548,222; note: when entering online please omit commas.)

Date: _________________________________________________________

2. * What percentage of your fiscal 2017 Total Gross Sales is represented by each of the following areas (must total 100%):

IMPORTANT! SALES VOLUME VERIFICATION

______ Paving ______ Sealcoating ______ Striping ______ Sweeping ______ Other (explain) ____________________________

______ Pavement Repair ______ Concrete ______ Surface Treatments (Micro, Slurry, Chip, Fog, etc.) ______ Hot mix asphalt plant operation

3. * What percentage of your fiscal 2017 Total Gross Sales is generated from work done on each of the following (must total 100%): ______ Highways ______ Driveways ______ Streets/roads ______ Other (explain) _____________ ______ Parking lots 4. * What percentage of your fiscal 2017 Total Gross Sales is generated from each of the following types of customers (answers must total 100%). ______ Commercial/Industrial ______ Municipal (state/local agency) ______ Multi-family residential (apartments/condos/HOAs) ______ Single-family residential ______ Other (explain)______________________________________

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To qualify to have your Top Contractor application considered, third-party verification of your FY 2017 Total Gross Sales is required from your company’s CPA, an independent CPA or your accounting firm, or a copy of the appropriate page from your tax return. Verification must be on the CPA or accounting firm letterhead (no photocopies) and must include a statement to the effect that “I have reviewed the company’s Top Contractor application, and the FY 2017 gross sales response to question Number 1 is accurate to the best of my knowledge.” The letter must be signed and dated and include the person’s name, title and telephone number.

No financial information will be revealed; it will be used only internally to determine qualification for each listing. Send verification to:

aheydorn@ACBusinessMedia.com

or

Pavement Maintenance & Reconstruction 2017 Top Contractor Application 201 N. Main Street, Fort Atkinson, WI 53538 Attn. Jessica Lombardo Questions? Allan Heydorn, Editor; Phone: 708-531-1612; aheydorn@ACBusinessMedia.com

1/2/18 1:34 PM

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Sweeping

Allan Heydorn, Editor

Sweeping Corp. of America Sees National Sweeping Potential Private equity-backed SCA plans to bring efficiencies, career operators and improved service to sweeping industry ABOUT A YEAR ago Soundcore Capital Partners purchased Nashville, TNbased Sweeping Corporation of America (SCA) as the platform on which to build a national sweeping company. Following the purchase of its first privately held company, the new company began operating under the SCA umbrella headquartered in Cleveland, OH. Since then SCA has acquired four additional sweeping companies in the eastern United States: Sani-Tech, Nashville, TN; Sky Sweeping, Louisville, OH; Reilly Sweeping, Fairless Hills, PA; and Clean Image, Circleville, OH. According to Christopher Valerian, president and CEO of SCA, the acquired companies currently have a sales mix of 75% broom sweeping (streets, highways, construction) and 25% air (parking lots).

The company now employs roughly 600 people and operates 500 sweeping trucks in 21 locations. Valerian says SCA expects to double the number of trucks it has in the field by the end of 2018 – partly through acquisition and partly through organic growth.

“We plan on continuing to grow at about that same clip,” Valerian says.

“We’re going where we see opportunity and right now we see most of that in the eastern half of the United States. But if we see something in California or any other place we’ll pursue that as well.”

Valerian, who has experience directing a private equity-backed roll-up in the solid waste management industry, says that the sweeping industry is ripe for the approach SCA is taking.

talented management team running the business day-to-day. My job is really just to continue their tradition of excellence and provide resources for the combined entity."

Why the Sweeping Industry?

"An opportunity exists with scale to service the customer better, whether on the parking lot side or the power sweeping side," says Christopher Valerian, president and CEO of Sweeping Corp. of America. "There’s a big opportunity to provide a better service and more consistent service across a broader geographic market.”

“The challenges in the sweeping industry are very similar to the challenges we faced in the solid waste management industry. I have seen that the things we did successfully creating efficiencies in the solid waste management industry can work equally well in the sweeping industry," he says.

Valerian says his approach to business is focused around creating a field-driven company that provides a consistently high level of service to its customers. “Our acquisitions include some of the oldest, most-respected companies engaged in power sweeping. For the most part the owners of these companies are shareholders in the larger SCA, which creates a very

Valerian says the $6 billion sweeping industry is ripe for consolidation because it is highly fragmented and capital intensive. He says this market condition is very similar to what he experienced in the solid waste industry. But there are also other important reasons – some of which mirror the solid waste industry: • Both industries rely on purchasing and maintaining a fleet of trucks to provide the service • Both industries face safety concerns with drivers and increased insurance premiums • Both industries serve similar customer mix with commercial and municipal • Both industries require pricing discipline to ensure proper returns for invested capital expenditures • Both industries are dealing with the national driver shortage and are dealing with upward pressure on labor wages He says because sweeping companies are regional or even local by nature, they can’t take advantage of economies of scale that a larger operation can offer.

That’s why SCA’s acquisitions are in the same region: proximity helps SCA take advantage of economies of scale that entrepreneurial companies or even larger sweeping companies just don’t have.

“Scale helps with efficiency and utilization” he says. “Back-office operations are typically where you can see near-term efficiency gains in a business consolidation.

However, we are experiencing positive margin expansion through increased asset utilization. We see this particularly in our parking lot business where we have been able to increase our route density.”

16 January 2018 • PAVEMENT • www.ForConstructionPros.com/Pavement

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Sweeping

He says another reason Soundcore is pursuing the sweeping industry is that their research determined that customers are often disappointed in the services they’re currently getting – and could be willing to pay for better service.

“Parking lot sweeping, especially in retail locations, is very visible to the customer. Many of the customers and potential customers I have met with have expressed a desire for a more consistent, higher level of service.” Valerian says.

“Over the last several years, the price people are paying for sweeping is going down while labor and equipment costs are going up, so margins have been pressured,” he says. “That creates market challenges for an entrepreneurial business. And that’s especially true on the parking lot side where it’s a very pricesensitive business. Some people will always want to take the lowest price and we won’t always be a fit for them.”

He says some of the pricing he’s seen of sweeping services doesn’t enable small- to mid-size companies to replace equipment, so they are working with out-of-date sweepers that they’re struggling to keep working and that probably aren’t working to their peak efficiency. “In any given market the cost of a truck, labor, fuel and maintenance are relatively equal, yet the unit pricing varies by 200%. The lower end of that spectrum makes for challenging market conditions” Valerian says.

But he says Soundcore and SCA are working to change that.

“The simple theory is that we believe there is a place in the market for good service using good equipment provided by quality, long-term employees,” he says. “We’re focused on finding customers that will pay a little bit more for the value of a high-quality service that’s consistent over a long-period of time.”

SCA Adds Resources to its Acquisitions Valerian says SCA has purchased a platform that includes some the oldest regional companies in the marketplace.

With the collaboration of the management teams, they have consolidated some back-office operations, installed process-driven systems, and put in

“We know that things aren’t done the same in Memphis as they are in Philly, so it’s important we listen to our field leadership who know and understand that local market.” efficiencies to improve profitability. They also have access to additional resources through SCA to be able to buy new equipment where needed.

“We have undertaken a fleet strategy to proactively replace our older units with newer trucks on a predetermined schedule,” he says. “We develop our strategy in conjunction with our field organization in order to make sure we address the local market needs.

We know that things aren’t done the same in Memphis as they are in Philly, so it’s important we listen to our field leadership who know and understand that local market.”

Valerian says that whether acquiring additional companies or expanding organically, SCA will be able to provide the best of both worlds – local operations and corporate operations – to sweeping clients.

“In any sort of consolidation there are going to be process changes,” Valerian says. “It’s organizing resources and installing systems that enable you to derive process-driven efficiencies. We are adding efficiency and investing in our employees to provide our customers a great service at competitive pricing.”

Some of what Valerian says SCA can bring to their sweeping business includes: • Newer fleets • Higher-compensated, quality, careerdriven drivers • Improved safety records • Responsiveness • Consistent service “If someone doesn’t place value on those things then they likely won’t be a customer of ours,” Valerian says.

In addition, Valerian says SCA brings fine-tuning to some processes – such as defining how much time operators spend on pre-trip inspections – and is installing technology to make sure operators are running their routes efficiently.

SCA has also added a Human Resources department, something most sweeping companies don’t have, to standardize hiring, handle insurance and employee benefits and other laborrelated activities. Valerian says bringing an HR department to the companies it has acquired reduces turnover, which will reduce overtime – which increases profits to the bottom line.

In addition, SCA integrates its own sales approach into the acquired companies. “When I look at the sweeping business, I’ve yet to find a company that has a sales force that’s out there,” he says.

“Usually it’s the owner that’s engaged in sales. SCA will invest in a dedicated sales force to help fuel organic growth.”

SCA Seeing Results Valerian says from the initial acquisition a year ago most of SCA’s growth has resulted from increased sales within the markets they bought into – working to densify routes, for example. “We initiate our sales and marketing efforts into areas where we have capacity,” he says.

“In all locations we’re already managing a fleet of trucks. If we’re running 10 broom trucks we can add 10 air trucks to that – or vice versa.

The infrastructure is already there.

We might have to add an additional maintenance person to service the additional trucks but that’s it. And that’s how we’ve achieved most of our growth,” Valerian says.

“Our growth and opportunity is the result of providing greater economies of scale, instituting some systems, and having financial resources we can call on when we need them. It’s only been about a year, but so far we are seeing the results we expected.”

18 January 2018 • PAVEMENT • www.ForConstructionPros.com/Pavement

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Striping

Allan Heydorn, Editor

Installing Rainbow Crosswalks in Arizona Speedy Striping uses epoxy, colored glass aggregate to create diversity intersection SPEEDY STRIPING IS always on the lookout for unusual, cutting-edge or high-profile projects, so when Lucas Boring, president, learned about plans to paint four “rainbow” crosswalks in a major Tucson, AZ, intersection he knew he’d found all three criteria in one job.

The busy intersection of 4th Avenue and 6th Street is near the University of Arizona and is one of the main college drags for restaurants, bars and entertainment. Situated in Tucson’s historical district, the area is managed by the Historic 4th Avenue Merchants Association, which was a supporter and partner in the plan.

Boring says the idea for the rainbow crosswalks belongs to Adam Ragan, associate director of the LGBTQ initiatives of Southern Arizona Aids Foundation. “He came up with the idea of the rainbow crosswalks at that location

and he worked on the project for four years,” Boring says. “He contacted me two years ago and I’ve been working on it ever since. I came up with the design for it, a custom-made product, and a unique production process.”

Speedy Striping donated planning, labor and equipment for the project.

The supplier Ruby Lake Glass, Richfield Springs, NY, donated a portion of the material cost.

“We’re honored to share in a project that highlights the diversity of everyone in the Tucson community,” Boring says. “It took coordinating a lot of moving parts to do something like this dynamic.”

Self-taught Stripers Boring and wife Patrice, project manager and office manager, started Speedy Striping, Tucson, AZ, in 2003

Lucas Boring, president, and his wife Patrice, project manager and office manager, celebrated Speedy Striping’s 15th anniversary in 2017.

20 January 2018 • PAVEMENT • www.ForConstructionPros.com/Pavement

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after working in the industry doing paving and sealcoating. Before then they had owned a variety of other businesses.

“I’m a serial entrepreneur,” he says.

The company, which employs 15 people in peak season, is a full-service striping contractor offering everything from parking lot striping, long-line striping, short-line road striping (intersections, crosswalks, stencils), athletic field and court striping, parking garage striping (see sidebar) and warehouse striping, traffic sign installation, and marking removal.

“We basically taught ourselves the business,” he says. “We started out at ground level knowing nothing and did a lot of research and took our time learning it. A lot of people learned from somebody and then they move forward.

We started our businesses from the outside and worked our way in.”

He says they are constantly on the lookout for the best product, best equipment and best practices to do the best job.

Specializing in Parking Garage Striping Speedy Striping also offers striping for parking garages, which has become somewhat of a specialty for them.

“We have what we think is the most unique system in the state, a combination of machinery and technique,” Lucas Boring says. “We’re the only company I know that does a deep cleaning of the parking garage before striping. We actually remove the grime from the facility, we don’t just move it off the places we stripe.”

Boring says Speedy Striping uses a pressure washer and vacuum recovery on flat washers and two industrial floor scrubbers. “With a detergent with a degreasing formula we’ve developed we remove the grime and rubber buildup off the floor to make it nice and clean for striping. There’s been a big boom in that for us. We’re scheduled to do almost every garage in the city on a maintenance program.

“We saw a need in the market and we met it!” he says.

“We’d striped garages before and we saw a need in that market. They’d hire someone to come in and clean the concrete before us and the places where they cleaned the stripes were fine but the grime was still there. They never removed any of it. Now we leave those garages really clean and striped and they look great,” he says.

“One of the things our clients find is that they call us for initial service but we always give them a lot of value added.”

Cutting-edge Company In fact, they have designed or modified much of their equipment. “We do a lot of research and if we can’t find what we’re looking for we design it ourselves.

Almost every piece of equipment we have has some kind of modification we’ve made,” he says.

Among their designs or modifications are: • Laser guidance on long-line striping units.

• A customized road reflector (RPM) trailer. “We cut everything off of a standard trailer and redesigned it to have better ergonomics, better safety features and better lighting for us.”

• Glass bead dispensing system for walkbehind carts. “There’s always somebody standing around when you’re ready to start striping and we put them to work doing beading,” Boring says.

“That gets him used to striping and helps develop the eye-hand coordination as they follow the stripes.”

• A colorization formula for the green extruded thermoplastic often used on bike and pedestrian safety zones.

Stained Glass Aggregate for the Rainbow The rainbow crosswalks cross each street of the intersection, and because of the high-profile location the planners, along with Boring, wanted a bright look that would last for years. So Boring took on the task of finding the appropriate material. They considered paint but after inspecting other colored paint that had received high traffic volume they weren’t happy with the degradation of the colors, so they looked for something else.

The rainbow crosswalk job required 24 unique phases – six colors times four crosswalks – and Speedy Striping timed all the steps for each phase including mixing epoxy, squeegee application of epoxy, workability of the epoxy and placement of aggregate

“Other communities have tried colored paint but that ends up looking real bad within a month,” he says.

What they wanted was a very highquality product that would not only stay clean but wouldn’t track – a potential

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Striping

Speedy Striping is a full-service striping contractor offering parking lot striping, long-line striping, shortline road striping, athletic field and court striping, parking garage striping, warehouse striping, traffic sign installation, and marking removal.

problem in hot Arizona summers with little rain – and would remain bright. So instead of colored paint Speedy Striping used a traffic-grade epoxy laid by hand and covered with a layer of crushed colored glass aggregate.

“One thing we learned during the project is that you can really put within the crosswalks whatever you want as long as it meets the MUTCD and ASTM specs,” Boring says. “We opted for crushed glass because it is more durable so it would stay looking good for a long time. Because this is a high-profile project we wanted something that would last as long as possible. The colorized glass aggregate offers great vibrancy of color and also offers UV stability which is also important here in AZ.” Boring says they matched the Pantone colors and Ruby Lake Glass stained the glass specifically for the job. In fact, for some colors Ruby Lake Glass had to blend two colors within the glass to get the exact color Tucson and Speedy Striping wanted.

Boring says the glass product met MUTCD and ASTM specs for coatings that cover a broad surface near intersections.

Timing is Everything Boring says because the intersection is so busy – one of the 10 busiest in the city – and because a streetcar comes through the intersection on a track, they had difficulty getting permission for a four-way closure – but they eventually got it. The Speedy Striping six-person team started work on a Sunday afternoon and worked 18 straight hours so the intersection could be opened for Monday morning traffic.

“A lot of work went into determining the schedule and timing each phase of the job,” Boring says.

Planning out how to install the rainbow crosswalks on four streets with as little disruption as possible was the first challenge Speedy Striping faced.

There were four crosswalks with six colors (not including white) and work had to be phased with epoxy cure time and to keep production going.

“There were 24 unique phases – six colors times four crosswalks – and we timed out every part,” Boring says. Among the steps Speedy Striping timed out were: • Mixing epoxy • Squeegee application of epoxy • Workability of the epoxy • Placement of aggregate

As a result of its work with the colored glass aggregate, Speedy Striping is now a national consultant for the material supplier to anyone interested in a similar process.

“The challenge was having so many phases of epoxy cure time and keeping production going,” he says. “We timed all those things out for 24 cells so we could have steady production.”

Once on site crews examined the existing crosswalk, cleaned up the layout, straightening it out a bit, and then they got started. They taped off a reveal on the tracks to allow the

streetcar to pass through, and they also created a 4-in. reveal as a transition from the crosswalks to ADA ramps, making sure access was provided according to ADA regulations.

Next they taped all sections of each crosswalk to create crisp lines for the colors.

Boring says the plan was to alternate cells going all around the intersection, first spreading the epoxy then placing one color glass on one cell, skipping a cell, and placing another color glass.

Glass aggregate was supplied in 50-lb. bags and broadcast by hand across each section of epoxy. Boring says the crew paid close attention to the glass aggregate as it was being spread to make sure the epoxy was completely covered. “We made sure every bit of epoxy had a good bed of aggregate sitting on it,” he says.

“We then let it sit for the appropriate time, which varies depending on temperature and humidity,” Boring says.

“And we had to keep a close eye on the epoxy too. We had to really watch the phase change and had to pull the tape off right away to get the clean edge.”

Then they broom swept the aggregate and then vacuumed the aggregate to remove any excess glass.

“What’s left behind is a vibrant, durable traffic product: recycled colored cut glass aggregate,” he says.

“Basically we went through and did a couple of colors, did recovery and cleanup on those colors, then started again and repeated the process,” Boring says.

Once all the rainbows were in place Speedy Striping painted the 12-in.-wide edges of the crosswalk and placed glass beads on the white paint, making the crosswalk compliant with MUTCD. “It was really fun, really challenging,but we enjoyed doing it,” Boring says. “Everything came out great especially since is the first time being done. People can’t believe how bright and vibrant the material in the intersection is.”

22 January 2018 • PAVEMENT • www.ForConstructionPros.com/Pavement

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Office

Allan Heydorn, Editor

Is Your

OFFICE STAFF the Backbone of Your Company?

It should be – and here’s how to make it happen

HOW MANY OFFICE workers – administrative support staff – does your company employ? Office workers, unseen to most of your market, are the essential workers that can make or break every operation. And they often don’t get the recognition they’re due.

“The office is beyond the heartbeat of the company,” says Linda Alfonsi, operations manager for Petra Paving, Hampstead, NH. “We’re front and dead center and we’re driving the ship.”

But it’s not the number of people that make an office successful because every office, regardless of its size, has to accomplish the same tasks. And when those tasks are accomplished smoothly, jobs get done well and on schedule. When those tasks are done poorly or when they aren’t done at all, the entire business suffers — from the crews out on the job to the estimators and salespeople to the customers.

Backbone Builder #1: Build-in Redundancy Whether it’s people being ill, needing time off for family or leaving to take another job it’s important to hire and train so that office members can perform at least the basics of each other’s jobs.

Tasks in the Office Like many contractors, Brian Gann, founder, president and co-owner with Joe Abner, vice-president, of Gann Asphalt & Concrete, Riverside, MO, initially handled all the office and backroom work himself. “But we eventually hired people here and there as we saw the need,” he says.

Gann started Gann Asphalt & Concrete in 1994 with a 500-gal. sealcoating tanker and added services as needed by customers. Today the company’s 30 employees (which include two office support staff) generate 60% of work from paving and repair, 30% from in-house concrete work, and 10% from sealcoating and striping.

Today the office staff is led by his daughter, Robbin Markham, office manager, and supported by Stephanie Holey, administrative assistant.

Markham has worked in the office since she was 18 and today answers phones, “other small things that take up a great deal of time,” but spends most of her time with the books handling accounts payable, receivables and marketing.

“It’s a big role in a smaller company like ourselves,” Gann says.

At Petra Paving, Linda Alfonsi like many operations managers is a jack of

Backbone Builder #2: Making Contact Office staff who will be greeting customers and prospects on the phone, handling complaints and answering questions should have the personality and patience to do so. “The first customer interaction is with the office personnel,” says Linda Alfonsi. “That’s the footprint to future expectations of your customers.”

Robbin Markham (right), office manager at Gann Asphalt & Concrete, devotes most of her time to accounts payable, receivables and marketing. She is supported by Stephanie Holey, administrative assistant. Both answer phones and juggle “other small things” that pop up unpredictably.

24 January 2018 • PAVEMENT • www.ForConstructionPros.com/Pavement

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Like many operatons managers at small and mid-size firms, Linda Alfonsi, Petra Paving, is a jack of all trades. Recent staff additions have made it easier for her to focus on running operations.

Jenn Dube is part time at Petra Paving and her responsibilities include answering phones, job costing, updating all data into Excel worksheets, tracking man-hours for all crews, mileage reports and customer service.

all trades. She handles payroll, accounts receivables, scheduling, and customer service. Until 2017 she also handled all the job costing (Petra Paving tracks everything daily), but it got to be too much.

“For years it was me and one other person in the office to answer the phones, but I was becoming overloaded,” Alfonsi says. “I was so busy ‘doing’ things that I didn’t have the time to run the operations like I was supposed to and like I wanted to.”

This, Alfonsi says based on conversations with other contractors, is a fairly typical situation. She was the hub through which the entire Petra operation ran.

Most if not all contractors find themselves, at one time or another (and often more than once), in situations similar to both Gann Asphalt & Concrete and Petra Paving. That’s because as contractors grow their there are “pinch points” when companies are not quite big enough to hire that additional administrative person but too big not to.

Contractors who start working out of their pickup truck and who head back to their home office every day to handle the office work can do that for a while. But eventually, assuming they are successful,

their support needs are greater than they can handle alone. Gann says he understands – and remembers -- the frustration early on of trying to handle all the office-related jobs and he knew he couldn’t afford to drop the ball on anything.

“I wasn’t in business very long before I hired that one person to support me in the office,” he says. “I didn’t have the money but I needed that person and I decided I’d better hire sooner rather than later. Dropping that one call or not being there to take the call can have a huge impact on your growth.”

Technology has made it easier for the smaller operator to give the impression he’s a bigger business because the company number can be a cell phone, emails can be responded to in the field etc. but that can only carry you so far. At some point, for your sanity and for the growth of your company, you need an administrative staff – an office of support people – who have your back (and your front).

Petra Paving now has a three-person office staff. That’s because things came to a head late last year when Petra Paving started a second business (unrelated to paving) and Alfonsi was tasked with being essentially an operations manager for both.

“Up until a certain point it worked fine, but Petra got to a size where everything couldn’t flow through a single person,” she says. “Having everything in my hands was backfiring because I couldn’t keep up.”

That’s when Petra Paving brought in a part-time person to handle all the job costing and related work, which enabled

Backbone Builder #3: Prove You’re Legitimate Hiring an office staff lets customers know you’re a legitimate business. “In this industry that can be important,” Linda Alfonsi says.

Tara Durney is full time at Petra Paving and her responsibilities include answering phones, filing, crew paperwork, dig safe renewals, fuel reports, scheduling estimate appointments, confirming all scheduled appointments and customer service.

Backbone Builder # 4: Pay Attention to Details Brian Gann says handling “all the little things” adds up to a good reputation for the company. And he says handling those details usually falls to the office staff. “That’s customer service,” Gann says. “When we don’t have a sales person in the office the admin takes all the calls and questions, tracks them on a board and follows up to make sure they get handled right away when we’re running and gunning.”

Alfonsi to get back to the actual operations manager she wanted to be – and that Petra Paving needed.

“It’s a workload issue,” she says.

“That’s usually when companies realize they need to add a person to the office.”

Gann says that larger companies have individuals assigned to do specific tasks, but smaller operations need people who are willing and able to take on more and different work than their job description details. Just a few of the tasks office personnel perform include: • Answering the phone • Developing proposals • Providing essential paperwork such as proof of insurance • Job costing and job costing analysis • Payroll (sometimes tracking hours for a payroll service, other times actually cutting of checks.)

• Human Resources including insurance, benefits, time off, child care etc.

• Purchasing (office supplies and miscellaneous items)

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Office

Backbone Builder #5: Do You Need a Project Manager?

Not if you have a good office manager or operations manager. Neither Petra Paving nor Gann Asphalt & Concrete have project managers because their office/operations managers can perform two or three key roles. So work that in a larger company is done by the project manager – scheduling, renting equipment, readying tools and equipment for each crew each day -is handled by Linda Alfonsi for Petra Paving and by Joe Abner, estimators and the sales reps at Gann.

• Crew management • Scheduling • Safety programs • Accounting

What Skills to Look For Gann says that when hiring for the office, first determine where you’re going to use that person the most. Then detail the skills for that task and hire the person that has those skills.

“You want to hire someone who can develop and grow in their job and who can grow with the company and that’s what you want,” Gann says. “But when you’re hiring initially you’re hiring to get a specific task done.”

Alfonsi says Petra Paving has had a difficult time finding the right person to fit the third office job they needed to fill. The last two hires, she says, were nightmares and she can relate to the horror stories many contractors can tell. But the admin they have now is completely different.

“She got it and ran with it,” Alfonsi says.

“The biggest attribute that support staff must have is to see the bigger picture,” Gann says. “As we were growing, Robbin, our office manager, would be the first person to take the call from a customer and the last person to do the receivables. So she would see everything through from beginning to end and that’s essential regardless of how many people are working in the office. The crew is focused on each job and the sales

people are focused on their jobs and clients, but the staff sees the bigger picture from beginning to end.”

Gann and Alfonsi point out that as the company grows so, too, do the responsibilities of the administrative staff. “And they need to take on those responsibilities,” Gann says. “When you hire the right people hopefully they’re going to grow with the organization.”

Office and administrative staff obviously have to the specific skills for which they were hired, but other skills to look for when hiring office staff include: • Multi-tasking. “This is the key to the success of an office staff in a small- to mid-size operation,” Gann says. “There are all sorts of things that come up within an organization and they’re not always assigned to someone. Because the office staff are the ones in the office they tend to end up having to handle

Backbone Builder #6: The Cost of Communication Breakdown Here’s an example of the importance of communication: A customer calls days before a scheduled job and wants to make his driveway wider. The call is taken by an office staffer who acknowledges the change – but the change doesn’t get transferred to the crew’s job sheet.

When the crew goes out to pave the driveway they know nothing about the widening so they don’t have the additional material or equipment needed to widen the driveway. They pave the driveway per the original job.

Result: The company looks bad because the change didn’t get communicated; the customer is unhappy. The crew has to go back to the job, requiring a second mobilization. They can’t drive a truck onto the newly placed mat so they have to haul the HMA from the truck in a wheelbarrow up to where the widening is required. That job is at best less profitable and at worst costs the company money. Plus, other jobs in the schedule are disrupted.

them.” Gann says his company just printed t-shirts for the crew and bought gifts for some of our customers and Markham and Holey ended up handling that. “It’s not in a job description and it doesn’t happen often but things like that come up all the time and the office people need to be able to handle them.”

• Communication. “This is huge, especially in a small office,” Alfonsi says, adding that listening skills are a big part of communicating. “You can and should learn a lot from everyone around you, especially in a small office where everyone works closely together.

You can advance much quicker and take on more responsibility more quickly by listening to what others are doing and how they are doing it and incorporating that into you daily efforts.”

Backbone Builder #7: Match Personalities In smaller companies, which generally have more confined office space and where people need to work even more closely together, it’s important that the personalities fit well. You don’t have to be the best of friends and you don’t have to socialize outside of the office, but office staff needs to get along.

• Phone etiquette. “Even if ‘it’s not their job’ to answer the phone, most office staff eventually become part of that first contact with the customer,” Alfonsi says. Gann adds characteristics of friendly, outgoing and someone who is “on the ball.”

• Organization. An essential skill for someone juggling multiple tasks and interacting with numerous teams.

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Office

• Flexibility. A requirement especially for small companies where office staff might be called on to step in and assume another job temporarily.

• Follows directions. Essential as part of a small team and for learning.

• Good computer skills. Essential in today’s workplace.

• Adept at social media. See above.

• Honesty. Difficult to determine at the start but because of the nature of the work you need someone who is honest.

• Cares about the company. Also difficult to determine at the start but the office role requires a personal investment.

“You need to look for someone who can hit the ground running and who is not afraid to take over,” Alfonsi says. “I’m not interested in someone who can just fill in the blanks. I want someone selfmotivated, who is interested in more than just filling the position. I want them to

Backbone Builder # 8: Share Information Because the support staff is collecting financial details including paying bills and job costing, the office has a different perspective on what’s happening in the field. Both Gann Asphalt & Concrete and Petra Paving perform job costing on a daily basis.

Brian Gann says it’s important to share that information with other team members. “The office staff will know before anyone else if our margins are running tight,” Gann says. “They can let sales people know and ask them ‘Is this what you figured or is something out of whack?’”

Backbone Builder #9: Take Advantage of Technology

Backbone Builder #10: Reward the Office Staff

Petra Paving now works through the cloud, which not only simplifies much of its sales and estimating but enables the entire process to run more quickly.

“Before a salesperson leaves a customer they pop all the job details to the cloud and we’ve got it in the office right away,” says Linda Alfonsi.

“Before that we’d have to wait for the salespeople to come back to the office and download it from their laptop.”

From that information the office creates a crew version of the job that includes tonnage, hours, and anything else specific to that job. “Basically all the details they need to do the job successfully,” Linda Alfonsi says.

“It’s easy to reward the sales staff and the crew but it’s important to recognize and reward those people who enable the sales people and the crew to get their jobs done with little disruption,” says Brian Gann.

take the job because they want to do the job at 100% because the crew and the customer and the company need that – not because they want a paycheck.”

But she cautions that owners and manager have to be willing to give up some control to find the right person.

“You have to empower the person to make decisions on their own,” she says.

“If the person comes to me every time a decision has to be made that’s a sticking point, and then we know we have a problem. I get so excited when someone comes to me after looking it all over and telling me what they think we should do.

“Sometimes the decision bites them in the butt, but that’s going to happen,” she says. “Then we just back up and see what happened and how it happened and then we redo it. We actually redo whatever it was because that’s the way to make the learning stick.”

Then Alfonsi and the staffer check the other paperwork to make sure that same problem doesn’t happen in other situations.

“All the pieces have to be there or the crew can’t run right. If they don’t have everything they need we’re in big trouble right out of the gate,” she says.

Systems Mean Success Gann says that regardless of company size, every contractor needs to have a

system in place, “from the initial phone call to the final billing and follow-up,” to make sure everything gets done the way the company wants it to get done.

And office personnel need to work within the system.

“That’s especially important for mid- and small-size companies because so many tasks are handled by so few people. In larger companies there’s more specialization,” Gann says. “If you don’t have these systems in place and don’t have that office support it’s going to be very difficult – especially in this day and age when it’s a very competitive industry.

You’ll have to work harder and stress out more and the company eventually will probably not succeed.”

Alfonsi says she’s talked with many contractors who don’t have a structured office organization and operation.

“The structure might intimidate some contractors who are more informal, but it works for us,” she says. “I don’t see how you can really get by without it, especially once you reach a certain size and if you’re trying to grow.”

Backbone Builder #11: Hire Inexperience Linda Alfonsi recommends hiring someone fairly young and to some extent inexperienced. “We do things a specific way that we’ve developed over the years and it really works well for us. So we want someone we can teach and who will learn how we do things and who will stay for a while,” she says. “I’m okay with change, and if someone thinks they have a better way, we can talk about it. But first they need to do it our way and learn the reason why we do it the way we do.”

28 January 2018 • PAVEMENT • www.ForConstructionPros.com/Pavement

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Business Growth

Allan Heydorn, Editor

How Pro-Pave Achieved Sustained

GROWTH

Virginia driveway paver adds concrete, expands into commercial work and highlights customer service

WHEN OLD FRIENDS Paul Addington and Tom Martin decided to start ProPave, a driveway paving company in 2001, they didn’t envision the company they run today. In fact they couldn’t envision it – it is that much different than what they originally planned.“The plan was to be the crème de la crème of driveway companies,” Addington says. “We were going to give great service, do great work and charge a premium for it.”

And that was that. Nothing spectacular, nothing huge, just a driveway paving business that could fill a niche in the Virginia market and provide steady earnings for the two of them. But even bestlaid plans can be... improved.

Today Pro-Pave, Sterling, VA, generates 65% of its work from paving and pavement maintenance and 35% from concrete work – mainly sidewalks, dumpster pads and curb and gutter. The company employs 130 people, with 40 people manning eight concrete crews and 80 people manning 11 paving and pavement maintenance crews. Most workers are skilled in one material or the other but a number are trained and skilled in both

and are able to float back and forth as needed. The company averages 7-10 jobs a day, usually three paving, three concrete, one cracksealing-and-sealcoating job, and usually a grading job to prepare for the next day’s paving.

Martin spends his days in the field, bouncing from job to job and checking in with each crew. Addington spends his days on the business side of things. And, unlike the direction and growth of their business, that division of labor is exactly how they’d planned it.

An Atypical Startup The two had been long-time friends, with Martin running his own landscape business, Martin Lawn & Landscape, which still operates, working on residential and light commercial properties. Addington had been a successful salesperson, first selling titanium nuts and bolts and then raising money for hedge funds. When Black Friday hit in 2000 Addington suddenly found himself out of a job. He and Martin then had a conversation.“He suggested we start our own business, specifically a business paving driveways,” Addington says.

“He told me ‘I know contracting and machines and you know how to sell. So you go sell ‘em and I’ll knock ‘em down’.”

And the two have been “knocking them down” ever since. But as they

learned more about the business and the industry they altered their plans, their projections, and their focus. What they developed is a thriving, organically growing full-service paving and pavement maintenance operation.

It Started with Paving Driveways As planned, Pro-Pave started out paving driveways. They bought a used Mack dump truck, a trailer, a Gehl paver box and skid steer and a Wacker RD11 roller.

“Then we dropped an ad in Val-Pak and sat and waited for the phone to ring,” Addington says.

They didn’t have to wait long. He says they had some driveways already in the pipeline through the landscaping company, and “the phone just started blowing up!

“We’d used a coupon with no expiration date and we offered 20% off on paving driveways,” Addington says. “We think we got such a great response because we don’t think anyone ever did that.”

Anyone starting a paving business would quickly realize they need an experienced crew or at least crew leader, and Pro-Pave was no exception. But what was different for them, and what enabled the contractor to get a running start, was they landed a foreman at the start with just those credentials.

“It was just by happenstance,” Addington says. “I was talking with my previous

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employer who had run the hedge fund, telling him what I was doing. He said right away that he knew a guy who’d been paving all his life. We met, hired him to run our paving, and relied on him to find the rest of the crew.”

By the end of that first season in 2001 they were paving one or two driveways every day. Success, right?

Kind of...

Addington says he and Martin had written an in-depth five-year business plan for a driveway-paving company, but not too far into that first season they realized they were surpassing their initial projections... But they weren’t making any money.

He says they did provide the great service they’d planned on and they did pave great driveways – but they weren’t charging the premium they intended or wanted to.

“We learned pricing the hard way,” Addington says. That’s because to price their work at the starts they examined what other contractors were charging for work, figured that was the market price, and priced their driveway paving jobs accordingly.

“We quickly realized the market was too low,” Addington says. “But not quickly enough. We were hemorrhaging money right out of the gate and it took us until the end of the first season to figure that out.”

To fix it they sat down, gathered all their expenses, and figured out all their job costs. They then applied a profit

Premium Pricing Demands Premium Customer Service

Paul Addington (left) spends his days on the business side of things while Tom Martin spends his days in the field, bouncing from job to job and checking in with each crew. That division of labor is exactly how they’d planned it.

margin to those job costing results.

“Figuring out we were hemorrhaging was terrible; figuring out how to fix it was great,” he says. “Once we got our pricing down we were able to keep ourselves afloat and pay our bills and barely paying ourselves,” he says. “We weren’t making much money but we weren’t hemorrhaging either.”

Once they established the pricing they needed for the type of work and service they provided, they began to grow, slowly and steadily, with each year building on the year before. He says that at the time they were still doing only work related directly to driveway paving – grading, stone placement and asphalt laydown.

But building a business on premium pricing requires providing – excelling – in an aspect of the business that others aren’t.

“You sure as hell can’t do it on price in this business because there’s always someone out there lower than you are,” Addington says. “So selling a premium service at a premium price is tough to do.”

In fact, he says his sales team often complains how much easier it would be if they could only drop the price. “They complain about the jobs they lose, and we understand that. But I just remind them that we make good money on the jobs we get,” Addington says.

“Plus, we’re trying to wear the white hat here as far as the industry is concerned. We’re trying to lead the industry by example by charging what we need to charge – because it’s what others should be charging too.”

“Customer service is the reason we can charge more,” Addington says.

“What that means in one word? Responsiveness. It doesn’t matter if you can’t give them what they need or if you can give them what they need – you need to respond to them and we always do.”

He says that in addition to being responsive, Pro-Pave does everything it can to make the property manager’s life Initially serving only the Virginia market, Pro-Pave now provides paving, concrete, and pavement maintenance services throughout Virginia, Maryland and Washington, D.C.

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Business Growth

Paul Addington says that adding concrete work played a significant role in their sustained growth once they got into the commercial market.

wanted to become a full-service, onestop shop for property managers.”

So they started offering and pavement maintenance work including cracksealing, sealcoating, and striping and concrete work – sidewalks, dumpster pads, curb and gutter.

Adding Concrete easier. “A good example is notification of tenants. We take that right out of their hands if they want us to,” Addington says. “Some property managers like to do it themselves. They want to maintain that direct relationship and communication with their tenants and that’s fine.

“But some property manager say ‘I don’t want to have to deal with the tenants on this because it’s going to be a real pain.’ And they’re right, it can be a real pain. They’re so busy with so many different aspects of the property that anything we can do to make their life easier is a good thing. So if they don’t want to do it we’ll take it all on for them: emails, signs for parking, notifications for each tenant. Property managers eat that up, and I think we excel there.”

Adding Commercial Work

“That helped because the big guys went after the infrastructure work, which was available because of the TARP funds,” Addington says. “They went after that and got out of our market and that opened commercial work up for us.”

Becoming a Full-Service Contractor By 2008 Addington and Martin realized they needed to offer more services because property managers continually asked them to perform additional work.

“A property manager would say ‘I need a sidewalk replaced’ or ‘Can you sealcoat my parking lot?’ and it got to the point where we were just like the ticket broker who doesn’t have the ticket to sell you but because he knows you want to buy he says ‘I can get that for you,’” Addington says. “We realized we could get more work and we realized we

And while pavement maintenance services are a natural outgrowth of the paving business, concrete work is more rare – especially to the degree Pro-Pave does it. But Addington says that adding concrete work played a significant role in their sustained growth once they got into the commercial market because it: • Provided an additional revenue stream • Provided a competitive service advantage over a contractor doing only asphalt • Provided a competitive cost advantage over a contractor who relies on subcontractors and adds 15% to the sub’s bid • Provided a quality advantage because Pro-Pave can train and control its crews to perform the work the way Pro-Pave wants the work to be done Addington says Pro-Pave bought used service trucks, concrete forms and basic tools and that was all they needed to add the service. “The capital investment in concrete is not very expensive. It’s more

Pro-Pave continued growing and in 2005 they decided to branch out into commercial work, doing almost exclusively new construction jobs working for general contractors.

“We were in growth mode and ready to take on bigger projects, but we also got a little luck because we were operating in Loudon County, one of the fastestgrowing areas of the country,” Addington says. “So in 2007-2008 when much of the rest of the country was mired in recession, we actually thrived. No one took a bath around here like they did in other areas of the country. In fact, commercial work was better here than residential work. So our timing was great.”

They were also helped by the TARP money coming out of Washington D.C.

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a labor-intensive work and we already had the labor,” he says.

He says they aggressively pursue concrete work, particularly on new construction jobs, but they found the same thing they found when they started their business pricing driveways.

“Everybody does concrete too darn cheap,” he says. “For us to provide the service and perform the work the way we think it should be done we need to charge a premium. So we did and we expected our concrete work to decline as we raised our prices – but it hasn’t. We’re still right on target.”

Initially Pro-Pave provided all services except for paving through subcontractors, but that didn’t last very long.

“We did it that way because I found a couple subs that were hungry and who wanted to do it and using subs enabled us to provide the service to clients,” Addington says. “But we soon realized we weren’t able to provide the type of service we wanted to provide and that we should provide.”

So in 2010 Pro-Pave brought all its services in house, and the company now rarely uses subcontractors – in fact only to handle excess workflow.

five-year window – but there are no plans to do anything different.

“We’re not looking to do anything different than we have and we’re not targeting a level of sales we’re trying to reach. We pursue small sustained growth and we’re more selective on

our clients year to year,” he says. “If we stayed this size, we’re good. People say if you’re not growing you’re dying and we don’t see it that way.”

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Organic Growth When Addington and Martin started Pro-Pave they thought they had identified a need that they could solve – so they thought they would have a successful business.

“When we started we thought if we can get to $10 million or maybe if we’re lucky $15 million that would be great and we’d really have something here,” Addington says.

In actuality they went from 0 to $30 million in sales in 16 years.

“It has been real organic, sustained growth,” he says. “It’s not like we had a real aggressive marketing campaign. Business just continued to grow steadily for us.”

As they did when they started Martin and Addington are working in another

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In 2005 Pro-Pave branched out into commercial work, doing almost exclusively new construction jobs working for general contractors.

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Sweeping

Allan Heydorn, Editor

How to Transform a

Sweeping Company

TKG Environmental Services develops core values, puts “the right people” in place, and demands accountability WHEN TKG ENVIRONMENTAL Services Group started doing business in 2008, they only swept, and they only swept parking lots. And they were called TKG Sweeping & Services.

But through a canny understanding of their roles in the business, a timely acquisition, and a willingness to transform the company, Rich and Dan Katz now lead a more profitable and more diverse business that still claims at least half its revenue from sweeping.

And Rich Katz, president and co-owner, will tell you, the change came about largely because he and his brother Dan, CEO and co-owner, are not sweeping contractors.

“We’re entrepreneurs,” Rich says.

“That means we’re looking to develop

a successful, profitable business – not necessarily a sweeping business.”

But a sweeping-focused business is exactly what happened.

Katz says he and CEO and co-owner Dan grew up in a family that was in the real estate business. So while working full time at other jobs the two bought and sold several flats in Chicago, until in 2004 they were successful enough to quit their day jobs and concentrate on real estate.

Over four years starting in 2004 they raised roughly $20 million from investors and had bought several shopping centers throughout the Midwest. When the recession hit in 2008, the Katz brothers had to reevaluate what they were doing. One thing they did was buy a parking lot sweeper and start maintaining their own properties.

“It was a way for us to make a little extra money plus we were not happy with the company that was doing the sweeping for us,” Katz says. “We didn’t know if there was a business there when we started sweeping, but we weren’t really

concerned with that and we figured if there was one we could figure it out.”

That was the winter of 2008. In 2009 they incorporated TKG Sweeping & Services, providing parking lot sweeping, portering and power washing in southeastern Wisconsin. In April 2009 they received an unexpected phone call.

“That’s when we got our first call to bid on another property,” Katz says. “They weren’t happy with the service they were getting so they wanted to know who did our sweeping. And when we told them we handled it ourselves they asked us to bid their property.”

By 2010 TKG Sweeping & Services was getting a steady stream of “Who does your maintenance?” calls – and suddenly they had a sweeping business.

Soon TKG owned 10 parking lot sweepers and swept 175 properties with eight trucks heading out every night.

“One advantage we had is that as a property manager I know what property managers are looking for,” Katz says.

“And if you’re in real estate you know a lot of people in real estate. So once we

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realized we had a sweeping business we started calling on people we know, we put logos on the trucks and we put the drivers in uniforms. Things that made us look like a business.”

The two brothers slowly expanded into Chicago through real estate contacts, eventually sweeping 63 Pick’n Saves, Inland and DDR properties and they eventually got the contract doing Mariano’s construction site sweeping as the grocery chain was expanding. In 2010 TKG passed the $1 million mark, and the only marketing they did was an inexpensive website they’d put up after the first few calls came in.

“We quickly became the biggest sweeping company in Wisconsin, partly because we just did a better job,” Katz says. “And we did a better job because we knew what people wanted and we made sure to provide that. Our own properties were always clean and people

The Value of NAPSA “When we started we didn’t know anything about sweeping so I just started randomly calling sweeping companies to see if I could get any help. I crave knowledge so anything we do or want to do, I’ll call anyone and try to talk with them about it. I’m not shy.” says Rich Katz.

Katz says he ended up talking with members of the North American Power Sweeping Association (NAPSA) and 1-800 SWEEPER and TKG is now a member of both groups.

“The biggest part of my participation in these groups is the fact that I can talk with other people who are in the same industry we are and who probably have the same problems I’m having. It’s a great platform that enables us to reach out for help,” he says.

“Just the knowledge you get from these groups is the biggest part of it. People don’t know about the sweeping industry.

People don’t know why we sweep. Yes, to pick up the garbage, but there’s so much more to it than that. It’s keeping stuff out of the drains. We’re an industry that needs more of a voice and participating in these groups helps give us that.”

Among the efforts TKG makes to hire and retain quality workers are a health insurance plan, paid time off, time-and-a-half for overtime, and regular company outings such as a pre-season party and dinners. “We like to bring everyone together, families and everyone, to socialize outside the office so people realize it’s not just about a job and they’re not just employees and we’re not just their employers,” Rich Katz says.

noticed that and called us. The corners were always clean and the sidewalks were always clean. We pay attention to that.”

Name Change Reflects Overall Goal In 2011 the entrepreneurial spirit took over. Dan and Rich learned that P & S Sweeping, Crystal Lake, IL, might be up for sale because the owner was looking to retire. They looked into the company and what they discovered was that P & S Sweeping had a substantially different business model than TKG and, though a smaller company, had greater profits.

Among the differences between the two companies were: • P & S did a lot of daytime work vs.

TKG which did primarily night work on parking lots • P & S focused on big jobs such as large industrial and office properties • All P & S drivers had CDLs “P & S was doing 20% or less of retail sweeping and that’s something that really got our attention,” says Katz, adding that at the time TKG was doing 100% retail sweeping. “He was small but he was making money and his profits were greater than ours. He had a great business model.”

Among the reasons P & S was more profitable was that because P & S emphasized sweeping other than retail parking lots they could charge by the hour, which they did on their construction and street sweeping jobs.

“So we bought the company, the owner worked with us for a little while, and we began transforming our business model. We adapted his focus to our business,” Katz says. “So instead of doing

60 Pick’n Saves we started focusing on larger projects that we’d do four or five times a year.”

Katz says the transition was slow but steady. The brothers each took out a second mortgage on their house to support the growth and shift. “We were patient and bought trucks as we needed them. When we had too much work for the trucks we had we bought another truck,” he says. “The shift was done slowly but it was an adjustment.”

At its peak of retail sweeping TKG handled 63 Pick ‘n’ Saves, 9 Developing Diversified properties, and 6 large Inland properties, among others.

In 2012 TKG acquired a roll-off dumpster business, and with that came a number of drivers who had their CDL, which fit well with the company’s new approach. And once they had the dumpster business they developed strong relationships with more construction companies – which opened the door for more non-retail sweeping.

Today TKG employs 24 people and runs 10 regenerative air Elgin and Tymco sweepers (no broom units) and one parking garage sweeper. Half the company’s revenue comes from

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Sweeping

Not Hiring Out of “Need”

With the acquisition in 2012 of a roll-off dumpster business, TKG developed strong relationships with more construction companies – which opened the door for more non-retail sweeping.

sweeping and sweeping-related services, while the other half comes from renting roll-off dumpsters to contractors. Retail sweeping accounts for less than 5% of sales. The company generates 25% of sales from construction-site sweeping, 25% of sales from municipal sweeping, and 45% from larger projects such as industrial parks, office complexes and construction sites.

“We kept retail for a long time just to ease the transition,” Katz says. “For shopping center work we billed the first of every month and so we were always getting paid. There was always steady money coming in. The net profit on retail sweeping is small but it’s regular.

The net profit on other types of jobs is larger but irregular and not guaranteed.”

Then they changed the name to TKG Environmental Services because “we realized everything we do is to improve the environment so the name made sense. Our goal is to direct as much as possible away from the landfills, to keep it out of the air and water,” Katz says.

“There’s always going to be garbage but if we can divert 70-80% of that from landfills that makes a real impact. And that’s what we think we can do.”

To that end TKG acquired in 2012 a recycling business, American Recycling,

but that business was closed in 2015 when it simply became too successful.

“We needed a bigger site because we were getting overloaded and we couldn’t handle the volume,” Katz says.

They scouted new locations and after construction delays the recycling aspect of the business should be opened by the end of 2017.

“We actually think the recycling will become the biggest piece of our business.

We expect it to gross what sweeping and dumpsters combined do within 3 years.”

The Value of Identifying Core Values As they changed the focus of the company, Rich and Dan realized that they were going to have to make additional, perhaps more difficult, changes as well: They needed to change the culture and they needed to hire “the right people” or move people within the company into positions that could best use their talents.

“Our goal was to get the right people so we can worry about the operation and so Dan and I can worry about everything else and the future. This year we’ve been focused on getting the right person in the right seat,” Katz says.

So TKG hired a consultant, Sean McDermott, McDermott Group, to help evaluate what they needed to change and to put together a process to implement those changes.

“We needed to find out what we needed to do to grow the business, as

Rich Katz says TKG’s transformation also changed the way the company hires. Not only do they look for the core values in new hires, they now hire all the time.

“Before we were hiring out of need and we were hiring the first guy through the door,” Katz says. “Now we always have ads out there and we’re always interviewing. If a guy walks in the door and knocks our socks off we hire him and then we figure out where he can fit. We hire people that seem to want to work.

It’s a tough job, the hours might not be the best, you get dirty. So we have to hire people who want to work and we want people who take pride in their work.”

But once hired doesn’t mean a new worker has it made.

“We’re very picky on the drivers we hire and we’re very fast to fire,” Katz says.

“People who don’t fit, who don’t want to be here, or who we don’t want are a cancer in the company and once a cancer is there it spreads fast. So if we identify that person we let him go quickly.

“You don’t want to be the company that fires a lot of people but we don’t keep a guy for five weeks, hoping we can ‘fix’ him, if we know from day one he’s not going to work out.”

Katz says TKG’s lead drivers do all training of new hires, which not only helps evaluate each person but provides consistency in training. “He’s been here, he knows the jobs, he knows our system, and he takes care of his truck. So he’s the ideal person to train new hires. That way all people are trained the same way and after three or four days he’ll know if the guy is going to work out or not,” Katz says. “Once the lead driver doesn’t want to train or keep him, why keep him?”

Katz says this approach also gives the lead driver more responsibility – and some accountability. “We like to think it gives him a sense of pride, and it creates some accountability because he’s training him and he’s making the decision that guy is going to stay or not.”

Katz says the end result is employees that fit TKG’s core values, which means they’re reliable and accountable, which results in better service to customers.

“Every company says they provide the best service – but we really do,” he says. “Our service is spectacular and my employees are the difference. It’s not just a job to them, they want it to be clean.”

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TKG outlined changes for operators, including implementing a four-day, 40-hour work week that virtually eliminated overtime.

opposed to what we needed to do to maintain the business,” Katz says. “We learned that the Number One thing you have to do is get the right people in the right seat and we realized we had a hard time growing because people were not in the right seat. In a couple of cases we had the right people, they just weren’t in the right seat.”

Upon evaluation Katz says TKG identified “a laundry list of problems” but once they examined them more closely all signs pointed to: • An operations manager who was not doing a good job • Drivers that didn’t embrace the new approach Then they developed a strategic plan to address those and other problems.

The plan, Katz admits, drastically changed the company’s culture, but if they were going to grow, he says, the culture had to change.

they employed.

By identifying the values TKG wanted all its employees to have, the company is now better able to see who does or doesn’t fit in and who will or won’t fit in among new hires.

Those core values include people who: • Good, honest people • Strong desire to succeed • Teamwork • Respects customers and peers “The culture overall has changed drastically,” Katz says. “But Dan and I are very clear about where we want to go and we’ve structured the company to get

Stayman, who had been assistant to the driver manager, was named manager of drivers/operations/scheduling after only two years with the company. In addition TKG hired a dispatcher, Jesenia Presley, who handles both roll-off dumpsters and sweeping; an additional accountant, Tracy Lesniewicz; and Dean Cirulis, the company’s first full-time business development/sales manager.

TKG realized they needed to change the culture and they needed to hire “the right people” or move people within the company into positions that could best use their talents.

Katz says their first action item was to eliminate overtime. That ruffled some feathers because people were accustomed to overtime pay and liked the extra cash.

“We were getting work done but we were paying 30% overtime because we had an operations manager who didn’t want to hold people accountable,” Katz says.

“But 30% overtime takes a big bite out of profits and limits growth opportunities.

So OT had to go. We decided either we need to get the manager to manage or change the manager.”

Closely tied to the reason TKG was paying so much overtime, they determined, was the fact that the company hadn’t established a set of core values they wanted in the people

there. We explained that to everyone and reviewed everyone and let them know where we thought they fit in and where we think they could improve.”

Not surprisingly, some people balked, including the operations manager and some drivers. The operations manager quit because, Katz says, “He realized he wasn’t going to do it. And we didn’t lose a beat when he left because he just wasn’t managing when he was here.”

That opened the door for the management changes TKG has been making over the last year. John Cox, a former truck driver who is in his fifth year with TKG, was named director of operations in April after being named the head of maintenance in 2016. Katie

Drivers Held Accountable

TKG also sat down with each driver and outlined changes for operators.

One of the first things TKG implemented was a four-day, 40-hour work week so drivers worked 10 hours a day.

This all but eliminated overtime, and while Katz says most drivers embraced the change, some did not (two drivers quit). Other changes include: • Allowing only 30 minutes for pre-trip preparation. “Some drivers were able to do it in 30 minutes so why can’t all of them? Why were some people take 60 minutes?”

• Drivers must clean the truck every day • Drivers must empty the truck of debris every day • A 10% increase in pay for drivers with a CDL. “We started paying more to try to get better people in here and it seems to have worked,” Katz says. “We’ve found that that increase is getting us more people coming through the door.”

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Sweeping

In addition, TKG changed from paperwork dispatch to all-phone dispatch, which Katz says drivers on the whole don’t like.

“They don’t like being tracked -- and it does track them – but that’s too bad,” he says. “If they’re doing what they should be doing then there’s no issue at all. Now we know where people are all the time.”

Recently TKG’s tracking showed a driver six miles out of his way – and he was fired.

“If you’re lost and you can’t find your way you need to call in and let us know so we can help. If you make a mistake on a job we’re not going to be happy about it but those things happen,” Katz says. “But if you’re doing something you shouldn’t be doing or driving in an area where you’re not supposed to be, that’s something we’re not going to put up with.

“We don’t want people here who are not willing to work and not willing to

work with our management, so we’re very quick to fire. If you’re six miles out of your way and you don’t call in, you aren’t willing to work.

“We’re nice guys, we really are. But that doesn’t mean you can come in here and not do your job,” Katz says. “It’s a good culture as long as you show up on time and are accountable for what you do.”

By identifying the core values TKG wanted all its employees to have, the company is now better able to see who does or doesn’t fit in among new hires.

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The Infrared Process Regains its

REPUTATION

Equipment manufacturers have revitalized a valuable pavement repair tool – and the future is heating up INFRARED PAVEMENT REPAIR – a process that was often oversold, too-often performed improperly, and whose resulting reputation took a hit setting the process back more than a few years – is steadily becoming an essential service among contractors’ pavement maintenance options.

“It’s very much an essential tool in a lot of markets,” says Wesley Van Velsor, vice president of Ray-Tech Infrared.

“People tried it and walked away from it but that’s because people were overselling it. They built up expectations that were way too high.”

But people are coming back.“There’s been a consistent effort to promote the process and more and more people are taking the process seriously and wanting to make it part of their pavement maintenance program,” says Matt Kieswetter, co-owner of Heat Design Equipment.

“Everyone now knows the whole process works.”

“It’s grown into being an essential part of the pavement maintenance fleet, but there’s still a ton of room for infrared to grow,” says Tom Allen, general manager at Kasi Infrared.

The Infrared Market in 2017 Cliff Cameron, director of sales at KM International, says KM sold a broad variety of equipment in 2017. “We saw a lot of companies investing in equipment, a lot of government spending, and that’s

Ray-Tech Infrared Corp. experienced a shift from its trailer-mounted line (shown) to its truckmounted TMV line which features four units, each outfitted with a 2-, 3-, 4-, or 6-ton reclaimer and a 6-ft. x 8-ft. heating chamber.

a good outlook overall for the asphalt industry as a whole,” he says.

Cameron says KM’s typical pavement maintenance contractor bought the self-trailering 4-40 model, which heats patches up to 5 ft. x 8 ft. He says paving contractors are buying the 2-18X which heats up to 3½ ft. x 6½ ft. for cold joints, seams and small defects. “As recently as five years ago those paving contractors were using torches for those kinds of repairs and now they’re using infrared,” Cameron says.

Van Velsor says Ray-Tech also saw demand for a broad range of its models.

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KM International’s biggest seller to contractors was the self-trailering 4-40 model (shown), which heats patches up to 5 ft. x 8 ft. KM also saw increased sales of its 2-18X model, which heats areas up to 3 ½ ft. x 6 ½ ft., to paving contractors using it for cold joints, seams and small defects.

“Whether the demand is growing from their customers, or contractors have just been watching the process and finally decide to get involved I can’t say.

But we’re seeing sales increase across the board in all our lines. People have realized that if they go out and practice it for a while and put some dedication into it and learn the raking and luting effectively they can make a killing on it.

It’s that good a process,” Van Velsor says.

“Seven years ago we sold mostly trailer-mounted units, but we seem to have come full circle and are now selling more truck-mounted equipment,” Van Velsor says. Ray-Tech’s truck-mounted TMV line features four units, each outfitted with a 2-, 3-, 4-, or 6-ton reclaimer and a 6-ft. x 8-ft. heating chamber. “Part of that might be the uptick in interest in reclaimers, which we mount right on the truck with the infrared heater, but that truck market is really booming.”

Allen says 2017 was a good sales year for Kasi, with more municipalities buying infrared units. “The increase in sales year to year is incremental but the trend is up and the mix of customers is changing,” Allen says.

He says that in 2017 Kasi saw a shift to its Patriot truck-mounted models from its trailer-mounted Minuteman line. The Patriot is available with 2-, 3-, 4-, 5- or 6-ton capacity reclaimers and an 8 ft. x 6 ft. heating unit.

“We used to sell more trailer-mounted units because municipalities had plenty of trucks to haul them around. But you do have to dedicate a truck to the trailer unit,” Allen says. He says the Minuteman units are 21 ft. long so they’re more difficult to maneuver “if you’re not used to hauling and maneuvering a trailer or if you have to position it in a tight space.”

Kieswetter says that because HDE

manufacturers a wide variety of equipment they can sell a good mix of product to both contractors and municipalities.

“And we saw steady growth in both markets in 2017,” he says.

He says that in 2017 HDE sold larger models than in the past – and sold them to contractors doing parking lot work – particularly its P1600 trailer-mounted unit which can heat an area 16½ ft. x 6½ ft. “We sold a whole different mix of equipment than we had in the past. It seems to go in cycles.”

Dave Strassman, president of Asphalt Reheat Systems, says sales for ARS went well in 2017 and he expects them to get even better. “We’re finding that once contractors see all that heated repair can do they don’t want to be without it,” he says.

Strassman (who prefers the term “heated repair” to infrared because infrared is only one of several ways to generate the heat) says that in 2017 ARS’s best seller was its portable units, the largest of which has a 4 ft. x 6 ft. heating unit and can be lifted into a pickup by two people (weighs less than 160 lbs.).

“Some of those trucks or trailers are difficult to fit into some tight locations to make a repair. The smaller you are the Also experiencing an increase in sales is Falcon Asphalt Repair Equipment, which manufactures hot boxes and recyclers that are capable of reclaiming anywhere from 1- to 8-tons of material.

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Special Report

more portable you are and that seems to be what people look for,” Strassman says.

“When we first started our trailer units were our biggest seller, but contractors used those more for stamped asphalt and people seem to have moved away from that,” he says. “We continue to sell our truck-mounted units but the portable units seem to take care of most of what the customers do.”

Greg Larsen, president and owner of Thermotrack, says their infrared unit is used primarily for stamped asphalt, a market which slowed in 2017. “The industry economically has taken a downturn this past year and many states and municipalities are experiencing financial issues and budget restraints,” Larsen says.

Thermotrack makes two models, each of which folds for easy transport and which can heat an area 6 ft. x 9 ft. Larsen says Thermotrack is different from all other infrared heating equipment in that it relies

on a patented “heat motion” system in which the heating element moves back and forth across the pavement.

The heating element can also move up and down, “a first in the industry.” He says this movement safeguards against overheating the surface and damaging the binding properties of asphalt, which is especially critical in stamped asphalt.

“After infrared is used to heat the pavement and stamping is complete, a two-part epoxy coating or thermoplastic is applied and will only adhere to a wellpreserved, undamaged asphalt surface,” Larsen says. “Because the heating

element in the Thermotrack unit moves, we eliminate much of the potential for human error, making operator reliance less of an issue.” He adds that more and more stamped asphalt projects specify that a “heat motion” (also termed “reciprocating heat”) system be used in the stamping process.

“Stamped asphalt still make sense and is a good value-added business when using infrared,” he says. “Stamped signage is also very popular for many business and is on the increase.”

Thermotrack heaters were designed primarily for decorative stamping and thermoplastic application, but Larsen says “heat motion" also works well for patching and repairs.

Reclaimers Boost Infrared Sales A number of the manufacturers credited an increased interest in asphalt reclaimers for the steady growth of sales of infrared equipment.

In 2017 Kasi saw a shift from its trailer-mounted Minuteman models to its Patriot truck-mounted units which are available with 2-, 3-, 4-, 5- or 6-ton capacity reclaimers and an 8 ft. x 6 ft. heating unit.

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Thermotrack equipment (left in photo), which can be used for all repairs but is especially effective for creating stamped asphalt, is different from other infrared heating equipment in that it relies on a patented “heat motion” system in which the heating element moves back and forth across the pavement.

“People are now looking for ways to reuse old asphalt, so combining infrared with a reclaimer is a great way to do that,” Kieswetter says. “Everyone wants to be able to reuse that old mix, they just wanted a better and easier way to reuse it.”

He says up until 2017 HDE’s bestselling reclaimers had a 2-3 ton capacity, but in 2017 the demand shifted to reclaimers with a 5-12-ton capacity – and he says both contractors and municipalities are buying the larger units.

“The smaller reclaimers weren’t a great help to larger paving contractors

Preformed Thermoplastic: Infrared’s Future Thermotrack’s Greg Larsen says use of infrared machines to install heatactivated material such as preformed thermoplastic stop bars, arrows and other symbols is bright.

He says heat-activated, preformed products will be in greater demand because the material is thicker so it lasts longer and because thickness can be controlled and is more consistent than other application methods. “Quality and material specifications are more accurate than hot liquid sprayed on the surface, which relies on an applicator’s ability and desire to maintain specs,” he says.

He adds that glass beads for reflectivity are also more controlled in preformed materials.

“These are factors that should give infrared heaters higher demand if state and DOT legislation is adopted,” he says.

He says currently the state of Florida requires heat-activated products for its stop bars and other pavement symbols.

“That’s starting to come around and we hope that creates the newest demand for infrared heaters,” Larsen says.

but with the larger recyclers they can travel a great distance from the plant and make the repairs they need to be more cost effective. That was difficult for the big pavers when they could only haul 2-3 tons of mix,” Kieswetter says.

Cameron takes the value of reclaimers even a step further, noting that the increased cost of hot mix asphalt (from $45 a ton to the area of $70 a ton in the last 10 years) means it’s more costly to waste material you buy.

“One of the best investments you can make even if you don’t buy an infrared machine is a hot box reclaimer because it enables you to have mix available when plants are closed so you can generate revenue all winter long, repairing trip hazards and other defects in parking lots,” he says.

“If I’m talking to a customer over the phone and he’s new to the industry and has a limited budget, I’d recommend to get a hot box over infrared because he can buy the amount of mix he needs to use and use what he buys and maximize his profitability,” Cameron says. “A hot box is an instant revenue generator so buy that first and then buy the infrared unit.”

Van Velsor says that reclaimer sales is the fastest-growing segment of RayTech’s business. “We’ve always offered storage boxes and reclaimers but today we’re primarily selling reclaimers because they can really help a contractor extend the season,” he says.

He says the most-popular units are infrared machines with 8- or 10-ton reclaimers attached. “Eight-ton used to be the most popular but people just want bigger and bigger. We’re now offering reclaimers that can reclaim and store up to 15 tons.”

Van Velsor says a new buyer of the reclaimers and infrared units is hot mix

asphalt producers and bigger pavers.

“They want the big truck models because they can haul more mix farther so they can be more productive. “ KASI also makes reclaimers but Allen says they are sold primarily with their infrared units. “Our reclaimers are a lot different than the other guys out there.

There’s a lot more to them so they’re more expensive,” Allen says. “There’s a huge market out there for 2- and 4-ton trailer-mounted hot boxes but the way we build ours we don’t compete in that market because of cost.”

Asphalt Reheat Systems’ 2017 best seller was its line of portable units, the largest of which has a 4 ft. x 6 ft. heating unit and weighs less than 160 lbs.

Falcon Asphalt Repair Equipment, which manufactures hot boxes and recyclers that are capable of reclaiming anywhere from 1- to 8-tons of material, says their company is experiencing a trend too. "The number of customers that are considering and actually recycling asphalt has grown significantly in the past few years and we expect the trend to continue,” says Ric Simon, executive vice president, sales and marketing.

Manufacturers Changed Contractor Perceptions Manufacturers have been working for years, educating contractors, public agencies and end-user customers of the value of infrared – and that effort to

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Special Report

revive the industry appears to be working.

Cameron says that much of the increased interest, use and sales of infrared equipment is the result of a concerted educational effort on the part of the industry.

“Over the past decade we as an industry, the infrared manufacturers, have worked harder and harder to educate people on the infrared process,” he says.

“Once people see infrared they become instant believers in the process. The industry has created a need for infrared and contractors recognized the need and have utilized their resource to meet that need. Everything worked together.

“Our customers in the industry are savvier and more business-oriented and more interested in buying something that’s going to save them money,” Cameron says. “We’ve seen a lot more sophistication in the customer base and a lot more larger units going out to new businesses.”

Kieswetter sees the same trends at HDE. “We’re starting to see guys who are taking it more seriously – not just guys who buy it so it can be part of what they offer but who are taking the next step to actively market it to their clients,” Kieswetter says. “People are starting to realize that with some marketing and some dedication there’s good money to be made on the infrared side. They’re realizing that people are still looking for cost-effective ways to repair their asphalt and infrared can help set them apart for those customers.”

Kieswetter says HDE is seeing growth more in the municipal sector and as older staff retire they expect to see even more. “The older guys are not as willing to try new things but the people coming in are younger and are more willing to look at new ways to fix the asphalt,” he says. “It’s a greener process, too, which appeals to the younger people more than the older. That’s something many older municipal workers aren’t interested in.”

Van Velsor says Ray-Tech is selling equipment to contractors outside the

Uses for Infrared • Remove frost from the ground • Remove tiles off a concrete floor • Potholes • High and low spots • Oil spot repair • Pre-formed Thermoplastic installation • Decorative pavement • Alligatored areas (for temporary repair or when damage is not base related) • Repairs around storm drains, manholes etc.

• Trip hazards • Cold seams • Utility repairs • Rework/touch up of overlays

pavement repair group that generally buys infrared. He says sweepers, sealcoaters and even striping contractors are “testing” the process by investing in a lower-cost, walk-behind unit. “Then we’ve seen a number of those customers going to a trailer-mounted unit,” he says.

Van Velsor adds that utility companies who handle their own repairs are also buying the larger units, and Kasi’s Allen says that even for contractors, closing utility cuts is a growth market. He says that a number of counties throughout the country have followed the lead of New Jersey, which requires that utility cuts are closed up with infrared. “It’s in the contract and that’s expanding slowly,” Allen says.

Allen says KASI has also seen expansion in infrared units sold for repairing parking lots. “That makes sense in that the property managers always have tight budgets but they also have liability issues,” Allen says. “So they’re using infrared to keep the parking lot not only looking good but safe and they can do that without making a major investment.”

Heat Design Equipment’s Joint Repair Train, used on two large-scale (15 and 18 miles) projects in 2017, is a hot-in-place recycling, continuous motion train of 90 ft. of infrared heaters that softens a 24-in.-wide section of longitudinal joint up to 2 in. deep. Following the heaters is a material processing unit with a milling drum that picks up the softened asphalt, transferring it into a recycling auger. It’s mixed with other material and a rejuvenator before it’s transferred into a paver.

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Infrared’s Future “Our industry is less than 50 years old so we’re just now coming into the second generation of owners. The dynamics of the industry are changing as it’s maturing,” Cameron says. “We’re seeing an overall sophistication where the industry now recognizes the value of quality equipment that not only produces a quality job and profitable job but also extends the season beyond when the plants close. That’s why it’s a great time to be in the hot box reclaimer and infrared industry today.”

He says another reason he expects infrared to grow is that it’s a relatively “green” process. “The carbon footprint is 50% less than the traditional removeand-replace method and the process conserves material. A 40-sq.-ft. patch needs 2 tons of asphalt, and rather than buy 2 tons of mix and haul the old stuff to a landfill you can heat what’s there and put in a few shovels full of asphalt.

It’s green, it’s more cost-effective than the traditional method and it has greater profitability,” Cameron says.

Larsen says that infrared’s ability to safely heat existing pavement to create seamless or thermally bonded joints or other repairs represents not only a savings for the customer when compared to cold patching and removeand-replace repairs but also a better quality and better-looking patch.

Strassman says infrared should become an even more important piece of equipment for contractors because the process gives the contractor control over the heat of the mix “anytime, anywhere.”

“Even when you do traditional patching it’s nice to have a hot day so you can take your time and work the patch like you want to,” he says. “When you control the heat like you do with infrared you control the whole temperature of the job and the quality of the repair. If

you’re working a job and it starts to cool off or doesn’t look right, just put the unit back over the job and heat it and in a couple of minutes you can rework it.”

He says infrared’s ability to fix minor paving blemishes without damaging a new mat enables contractors to get paid more quickly.

“It’s usually the finish that property owners are most concerned about. Say you have a tight drainage area that’s created a bird bath. With infrared it’s so simple just to warm it up and add a little material and compact it down – then you’ve finished the job and you can invoice the customer so that payment for a $10,000 job doesn’t get held up because of a birdbath. And you don’t have to cut a patch in the pavement to call attention to the repair,” Strassman says.

“A reputable contractor wants to put his name on his work and infrared makes it easier to do that.”

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Contractors ’ Choice: Skid Steers

Kim Berndtson

Skid Steers Maintain Strong Market Momentum in the Face of Compact Track Loader Growth While sales of compact track loaders now outpace skid steers, manufacturers anticipate continued success for the wheeled machines IT’S OFFICIAL. Compact track loaders have overtaken wheeled skid-steer loaders in volume of sales. This may not come as a surprise to many given the track machines’ versatility and the advantages in flotation that keep them working in less than ideal ground conditions — often critical to get jobs done regardless of what Mother Nature decides to unleash on any given day.

Yet, manufacturers aren’t anticipating, or predicting, the demise of the skid steer any time soon. “We don’t see as many skid-steer loaders being sold in North America, but there’s still very much a need for the machine,” says Randy Tinley, product marketing manager for skid-steer loaders/compact track loaders, JCB. “We have customers who are loyal to track machines. But in the same sense, we have customers who operate wheel machines.

They know what to expect and they know the machine’s capabilities, so when the new model comes out with upgrades and advances in technology, they want that new model wheel machine.

“We’re not steering away from wheels,” he adds. “We still have a great concentration on the wheel market and wheeled machines are still preferred in Europe, India and elsewhere.”

Gregg Zupancic, product marketing manager, John Deere, agrees. Although he acknowledges sales of wheeled models now trail tracked models, the market for the former is still going strong. “If you look at sales for the past 12 months, wheeled skid-steer loaders are up about 5%,” he says, noting compact track

loader sales are up about 12% for the same time period. “I don’t think skid steers are a dying market, but contractors are definitely realizing a lot of benefits of the compact track loader.”

“Skid-steer loader sales haven’t necessarily fallen off,” says Eric Dahl, Bobcat product specialist. “It’s just that track loaders have seen such significant growth year over year since coming out of the recession.”

There is a continued need for wheeled models. “Skid-steer loaders remain popular in many markets and applications,” states Dahl. “There is definitely a place for them, and there always will be.

I don’t see a day where it’s compact track loaders only. Skid-steer loaders still excel at certain jobs, and they still make sense for a lot of customers.”

“Skid-steer loaders certainly aren’t going away,” assures John Dotto, brand

The higher ground pressure associated with tires can be an advantage in dirt work requiring more surface compaction.

marketing manager for skid steers, Case Construction Equipment. “While the prevailing trend is definitely moving toward compact track loaders, there are still many applications where a skidsteer loader makes better sense.”

Conditions Where Wheels Shine Ground conditions are often a determining factor when choosing between wheels and tracks. Applications better suited to skid steers are often those where work is done on hard surfaces, especially concrete and asphalt.

“Skid-steer loaders are a great choice for hard surfaces because tracks can wear faster, which can increase operating costs,” says Dahl.

62 January 2018 • PAVEMENT • www.ForConstructionPros.com/Pavement

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Contractors ’ Choice: Skid Steers

While compact track loaders have gained ground in asphalt/pavement grinding due to the stability they can provide and their ability to hold grade, a wheeled unit can still have the upper hand in this application.

“Tracked machines have more rubber that meets the road. That means they have a lower ground pressure, but it can also mean more wear to the tracks,” Tinley points out. “Wheeled machines fare well in these environments because they have four wheels instead of a solid track.”

Zupancic concurs, noting, “A loader with a cold planer attachment will be working on hard surfaces all the time, so a better value might be a skid-steer loader because of increased wear to tracks.”

Skid steers also have the advantage when it comes to travel speed. “When talking about similarly sized and spec’d machines, one thing you will never get from a tracked machine that you will get from a skid-steer loader is ground speed,” says Dotto. “The way a track drive system works and the way it turns make it better suited for torque and power rather than speed. Turning the chain drive on a skidsteer loader through the axles doesn’t require the same type of torque, so you can get more speed.

The higher ground pressure associated with tires can be an advantage in dirt work requiring more surface compaction.“That’s why we still see a Skid-steer loaders continue to have the advantage on jobs involving hard surfaces and requiring faster travel speeds.

number of wheeled machines doing road work,” he states. “They can be equipped with pallet forks in the morning, then a bucket or broom for cleanup at the end of the day. They are a good choice for moving around a jobsite quickly, and for being the utilitarian tool they are built to be.”

Higher travel speeds make wheeled loaders a good choice for snow removal, as well. “When clearing parking lots, you want to move as fast as possible to get from job to job, so the advantage goes to the skid steer,” Dotto says. For maximum efficiency, he advises equipping the machine with aggressive, tractor-style tires rather than tires with larger lugs and more surface area, which can struggle to find grip in slippery situations.

The higher ground pressure associated with tires is another plus in snow removal. “With only four points on the ground, a skid steer has a higher downward pressure, which is better for pushing snow,” Zupancic explains. “A skid-steer loader may have 30 to 35 lbs. of pressure, while a track loader might have only 4 to 5. That higher ground pressure can also be beneficial if you’re doing dirt work and need to compact the ground to make sure it doesn’t settle.”

Skid steers are often the preferred machine in demolition and scrap/recycling, where debris can more readily damage rubber tracks. Higher travel speeds and paved surfaces can also come into play.

“If you have a machine equipped with a grapple bucket in a metal recycling

Fye typically uses skid steers on paved surfaces to avoid the added wear and tear on the tracked models.

yard, you’re moving pretty quickly sorting material from pile to pile, or bringing material from a different area of the yard,” says Dotto. “You’re likely also moving across construction debris.

That’s where a machine with solid or foam-filled tires can be a better choice.

If you cut a track, you’re probably in worse shape than if you have a flat tire in terms of the amount of time spent to get back up and running.”

Wheels can also be more favorable in tasks involving gravel, since gravel can get pinched in between the track and rollers and idlers. “It can chunk out the track and wear it out quicker,” Zupancic indicates. “Having wheels in a gravel environment might be a better choice.”

Lift and carry applications are often suited to wheels, as well. “A lot of times, you’ll be working on harder surfaces,” Dahl says, noting that turning with a load in a compact track loader can quickly wear tracks. “With skid steers, we promote a 70% weight distribution in the rear with an empty bucket, which makes it easier to turn, reducing tire wear. When carrying a load, the weight distribution shifts to the front, providing the same benefits.

“Another benefit of wheels in lift and carry applications is that you generally don’t need a lot of power,” he says.

Cost then becomes more of a factor.

64 January 2018 • PAVEMENT • www.ForConstructionPros.com/Pavement

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Contractors ’ Choice: Skid Steers

“Skid-steer loaders and track loaders have similar operating capacities so a skid steer can be a more economical choice because it is a lower-priced machine.”

Specification Advantages If you look past the wheels and tracks, a skid steer and a compact track loader

look virtually the same, and both are available with essentially the same features and options, although the popularity of certain options can vary.

However, a loader with wheels tends to be more compact, which can be important when working inside buildings and in tight spaces. “There are some

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key dimensional attributes that allow a skid-steer loader to fit into tighter places,” says Zupancic. “A similar-size compact track loader, by nature of having an undercarriage, will be wider so contractors who are dimension restricted may opt for a skid-steer loader.”

Lift and carry applications tend to favor wheeled machines due to a more balanced weight distribution when carrying loads.“In construction, skid steers are definitely being used in small paving jobs, driveways and in sewer drainage,” says Tinley. Their smaller size makes them a good fit for small neighborhoods and tight work areas.

Skid steers will also be lighter in weight, due in large part to the absence of heavier tracks, undercarriage and related components. That can be both a benefit and a detriment.

“Typically, a wheeled machine will be less gross vehicle weight,” says Tinley. For example, if a track loader weighs 12,000 lbs., the comparable wheeled machine will be around 10,800 lbs. “Weight can become important when you consider trailering and the need to be under a certain weight.”

Yet, a higher operating weight can provide better stability and tractive effort for pushing and digging. “It also improves breakout force,” says Dahl. “But for some contractors, that weight can be a downside, especially if they are trailering their machines a lot. They may have to move up to a larger trailer. That additional weight can also push them into a class where drivers are required to have a CDL.” Weight influences rated operating capacity, as well, which may or may not impact the desired task. According to Dotto, compact track loaders have a higher rated operating capacity given the weight of the undercarriage and components when compared to a similarly sized skid steer. “That can become important when considering the type of material you are moving and how high you are lifting it,” he says. “If you’re lifting full buckets of concrete debris over the sides of dump trucks in a roadside application, you’ll want a higher operating capacity vs. a machine that you’re putting into snow service where you’re pushing snow.”

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Investment and Operational Differences While the cost difference in the initial purchase price of a compact track loader and similarly sized skid steer is beginning to narrow, Dotto indicates that skid-steer loaders still cost about 5% to 10% less than a comparable tracked unit.

That can make wheeled models a more attractive investment, especially for firsttime buyers, says Dahl. “Compact track loaders cost more in terms of up-front purchase price, which can intimidate some customers,” he says. “So for a lot of first-time owners, a skid-steer loader might make more sense.”

Skid steers can also be less expensive to maintain and operate, in large part because tracks are more expensive than tires to replace, although that is changing as well. “The price of replacement tracks for a compact track loader

has come down significantly in the past few years,” Dotto says. “There are more suppliers that are doing higher volume, thereby driving down the price. There are also more players in the game in terms of aftermarket track solutions.

“If you consider that a contractor may replace tires every 500 hours and tracks every 1,500 to 2,000 hours, in general, that replacement cost prior to 2016 and 2017 used to weigh heavily in favor of tires. But now that gap has shortened.”

That said, the undercarriage can still be more expensive to maintain. “An undercarriage is pretty complex,” says Zupancic. “It will have rollers, idlers and a drive sprocket. It has a drivetrain that drives the sprocket that turns the tracks. All of those components can wear, and rollers and idlers need to be lubricated. You will also need to rebuild the rollers and idlers and replace the drive sprocket about halfway

through the track loader’s life. With skid steers, you only have to worry about the tires, since axles are generally designed to handle the life of the machine.”

A track loader will consume more fuel, as well, notes Dahl. “You will likely see higher costs per hour with a compact track loader,” he states. “However, a compact track loader will be more productive in many applications, so the cost per job may be much more comparable or actually less than a skid steer.

“It just depends on how you evaluate your costs,” he continues. “For example, let’s say that the cost of operation is 10% higher for a compact track loader, but a lot of times you may see a productivity increase of maybe 15% or more. This will lead to an overall cost per job that will likely be lower than a skid-steer loader because you can get it done quicker so you can move on to other jobs.”

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Marketing Kenneth Quick

How to Make Google AdWords Work for You Select and use keywords correctly – and don’t skimp on your budget THE ASPHALT BUSINESS is known for being stuck in the old ways of marketing. Many companies are still going door to door, hitting the newspapers, and relying on the phone book to generate leads.

Although some of these strategies may work, why not spend your advertising money on a system that actually focuses on people that are searching in your area of service?

When you are relying on the hard paper versions of advertising, you may be marketing towards an older group of people or simply hoping that someone runs across your ad and considers it as a possibility of something they want done to their home or business.

Along with these old-school techniques comes direct mailers, which can be a great form of advertising as well; however, you are banking on possibly finding someone that wants that service done. These forms of advertisement only lead to chance and possibly getting lucky with who sees your service ads.

Fortunately, Google takes the chance out of marketing for asphalt companies.

Google is the best form of advertising to date and presents an astounding opportunity for companies to gain clientele. In today’s society, most people rely on Google as their primary search engine for all of their needs, so why spend countless dollars on other services when people are already using this platform so regularly? Moreover, this form of advertising specifically targets the people in your service area via Google.

How to Set Up Google AdWords Advertising on Google starts by setting up a Google AdWords campaign.

AdWords, otherwise known as pay per click (PPC), involves a company

advertising at the top of Google to become the number one result for the search terms that the asphalt company wants to advertise for. However, the AdWords program is a very complex program and if not done correctly, a company can spend hundreds or thousands of dollars and not generate a high return on their investment.

When setting up an AdWords campaign, a pavement maintenance company needs to zone in on the keywords that the consumer will search for in order to find their pavement maintenance company – and be specific with these keywords. A keyword in this instance would be a service that the pavement maintenance contractor offers.

For example, if you are a contractor that paves driveways and parking lots, your keywords may include the following: asphalt driveways, asphalt parking lots, asphalt repair, asphalt sealcoating, asphalt line striping, asphalt companies, asphalt contractors, and pothole repair.

When utilizing these keywords correctly on Google, you want your ad to show up at the top spot on Google for the chosen keywords. To visualize how this works,

think of the top paid spot on Google as an auction. To get the top spot, you have to bid against your competitor for what you are willing to pay for that click (PPC).

For instance, if your competitor is willing to spend $5 a click for the keywords of “asphalt contractor near me,” then you need to be willing to spend $6 per click in order to beat out your competitor for the top spot. However, you will only spend one penny more than what your nearest competitor is willing to spend.

In some cases your competition may be willing to spend $19 per click and in return you might have to spend $20 per click in order to get that top spot.

Although that might seem like a high amount per click, as a company it can be extremely beneficial. That one click could be a phone call for a parking lot for a large business, and if AdWords is done correctly, every click should be a relevant click for your business.

The Value of “Negative” Keywords To make sure you are taking the chance out of Google and ensuring all of your clicks are relevant to your

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asphalt business, you need to set up your AdWords campaign with negative keywords as well. A negative keyword is a word or phrase that may be close to your business but you do not necessarily perform that service.

For example, if you are an asphalt paving company, you would want your ad to show up for a Google search that included keywords of “asphalt parking lot repair” or “asphalt paving near me.”

However, you would not want your ad to show up when keywords talked about an “asphalt paver for sale” or an “asphalt plant nearby.” Therefore, you would want to set up negative keywords that may include: “for sale,” “plant,” and “paver.”

By setting up negative keywords for your AdWords campaign, you can make sure your ads are only showing up for relevant searches that the consumer is searching for, which also ensures your advertising dollars are being used to set you up for the most success.

If AdWords is done correctly, every click should be a relevant click for your business. you are willing to spend $200 per day, you are allowing 40 people to view your website. If 20 of the 40 people call your business or fill out a lead generation form, that is potentially 20 leads for the $200 of advertising you spent. So if Google AdWords is done correctly and you are utilizing your budget to the maximum, you can generate a lot of traffic to your website, getting the opportunity to convert multiple leads to sales.

Google is by far the best form of advertising for paving and pavement maintenance companies. When utilizing Google AdWords in the correct way, the amount of money spent on a daily limit is minimal when compared to the number of people that may visit your website, and in turn become a customer.

If your company does great work and you leave your Google customers happy, referrals and word-of-mouth opinions can increase your sales even further. If you are willing to spend your marketing money on Google AdWords, you are setting up your business for successful leads.

Kenneth Quick is president of Asphalt Lead Generation (www.asphaltleadgeneration.com), which helps contractors in the asphalt industry improve their lead generation efforts. He can be reached at kenneth@quickleadsllc.com or by phone: 800-848-9513 or 269-317-6412.

What is a Google Lead Worth?

At this point, you may be wondering how much an asphalt lead is worth to your company. (We are not talking about a lead that is being sold to all of your competitors. Moreover, you do not have to worry about showing up to bid a job and getting outbid at the last second as you leave the jobsite.) We are focusing on a lead that includes the consumer picking up their phone and specifically calling your company, or filling out a lead form on your website where the lead goes directly to your email.

Fortunately, the Google AdWords campaign is set up by what you are willing to spend on a daily budget as a company. This means some companies may be willing to spend $30 per day, while others are willing to spend $500 per day. The more you are willing to spend, the more relevant clicks you will get that will ultimately provide you with more leads throughout the day.

For instance, the average cost per click in a territory for the asphalt industry is $5 per click. If your budget is set to $30 per day, you are only able to get six clicks on your ad that leads the customer directly to your website. If

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Kelsey Rzepecki

Winter Safety

Tips for Safe Winter Operations How to manage your workers and the jobsite in winter conditions THE COLD WEATHER and shorter periods of daylight make for higher risks and opportunities for accidents. The true danger of winter weather is not what you can see, but what you cannot. From black ice blending in with asphalt, to fluffy white layers of powder concealing ditches, unseen threats can cause damage to equipment and injury to workers.

To minimize risk and prevent your machines from becoming another unseen hazard, here are tips to keep your operations running smoothly this winter:

Review Winter Driving & Cold Weather Safety Procedures Prevent losses and maintain productivity this season by training all equipment operators on winter driving techniques.

According to OSHA, employers should train all vehicle and equipment operators for winter driving safety as well as ensure all operators are properly licensed for the vehicles they operate.

OSHA also suggests finding open spaces like empty parking lots to practice navigating icy surfaces for new drivers and those who are unexperienced operating heavy vehicles in winter weather. Teach drivers how to safely approach slippery roads and surfaces, windy conditions, damaged power lines and equipment, and anywhere else they are likely to skid, or lose control of their vehicle.

• Prevent downtime due to neglected machine maintenance. The undercarriage of a machine is responsible for 40-60% of its maintenance cost over the machine’s service life, depending on the type of machine. Maximize the efficiency of your machines in the winter by having equipment operators conduct daily inspections to ensure the undercarriage is clear and clean of any snow, mud, and debris that could increase the operation costs of

your equipment. Investing a little time before conducting work each day can save thousands of dollars in repairs in the long term.

• Install effective traffic control devices. Making stop signs, barricades, and other traffic control devices more visible helps everyone navigate safer and reduces risks to man and machine.

Implement reflective and high visibility signs to clearly identify active work zones and quickly communicate safety instructions. Apply additional lighting, barrels, cones, and barriers to mark and outline work zones and hidden lane markings. Prevent the chances of workers being struck by vehicles or mobile equipment and ensure all workers wear high-visibility vests or other devices so they are visible to drivers.

• Train workers how to recognize cold-related illnesses. The National Institute for Occupational Safety and Health (NIOSH) says contractors who are exposed to extreme weather conditions, such as freezing temps, may be at risk of cold stress. Most commonly, this is due to working in cold conditions for long periods, leading to high risks of hypothermia, frostbite, and trench foot. Ensure you and your workers

understand the danger signs including “uncontrolled shivering, slurred speech, clumsy movements, fatigue and confused behavior” (OSHA).

Implement Modification to the Jobsite Modifications to procedures and additional safety precautions may be necessary due to winter weather conditions. You can determine this by conducting a Job Hazard Analysis of work areas. Develop a winter worksite checklist and conduct a walk-through to identify areas where winter weather could introduce new hazards such as falling ice, slick or frozen surfaces, electrical hazards, and more.

Workers are more likely to be killed by construction vehicles that are operating on the worksite during highway construction operations. Also, 75% of motor vehicle accidents occur during daylight hours on highways; which does not take into account poor visibility that winter introduces.

Poor visibility plays one of the most dangerous roles during winter and can be fatal if workers are unprepared. Keep them safe by implementing the following safety controls on the jobsite:

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Winter Safety

• Inspect working surfaces that may not be as accustomed to cold weather.

Ensure you understand the materials you are working with and the proper methods to use to get the best results in the winter months • Ensure routes are clear. Ice and compact snow often hide edges, ditches, and uneven surfaces that may not be able to hold a heavy vehicles weight • Ward off unsafe areas with visible barricades and visuals • Ensure workers know where snow plow areas are by clearly marking roads and sections of the jobsite that need to be plowed • Provide more light if operators cannot see what’s in front or above them

Enhance Visibility from All Angles Reaction times are drastically reduced in winter due to slippery and icy road conditions. In the event of a sliding vehicle,

effectively draw attention to moving vehicles, workers, equipment, and surrounding hazards using highly reflective and high-visibility material: • Apply high intensity reflective tape for increased daytime and nighttime visibility for long distance viewing.

It’s ideal for traffic signs and personal protective equipment (PPE) like hard hats and safety vests.

• Apply reflective stick-on shapes to add reflection wherever needed like snow plows and vehicle fenders, other equipment and machinery, PPE, and smaller items like tools and emergency equipment that may be difficult to find or see in low-light situations.

• Warn other vehicles to keep a safe distance from plows and other road maintenance and construction machinery with bold signs that are easy to read.

• Avoid operating machinery in poor light conditions. Vehicle headlights

alone may not be enough to effectively display ground conditions or overhead hazards on construction or industrial sites. Provide temporary signs or labels that indicate hazardous areas if operations are possible.

Regardless of your location and work environment, ensure your workers are physically taking care of themselves and are trained on all changes and modifications to their normal working procedures in the winter season. With reflective tape and custom, highly visible signs and labels, you can ensure safer winter operations.

Kelsey Rzepecki writes for Graphic Products, makers of the DuraLabel line of industrial label and sign printers. For more information about customized visual communication, visit www.

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Classifieds

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Titan 1000 LB Thermo Striper with Trailer Only 838 hours! Ready to Stripe.

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2004 GMC TMT Airless Paint Truck

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Vorteq Used Attenuator Trailer

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Please call for used parts for most striping equipment and save! www.ForConstructionPros.com/Pavement • PAVEMENT • January 2018 75

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Classifieds

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76 January 2018 • PAVEMENT • www.ForConstructionPros.com/Pavement

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Pavement Marking Division Cedar Hill 930 KCK Way Cedar Hill, TX 75104 www.ForConstructionPros.com/Pavement • PAVEMENT • January 2018 77

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Classifieds

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Call Toll Free 1-888-843-1805 78 January 2018 • PAVEMENT • www.ForConstructionPros.com/Pavement

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Classifieds

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CALL JOHN FOR DETAILS 440-479-9344 www.ForConstructionPros.com/Pavement • PAVEMENT • January 2018 79

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877-690-4093 www.ForConstructionPros.com/Pavement • PAVEMENT • January 2018 81

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1/3/18 11:32 AM

On The Job

John Ball

Fine-tuning Driveway Paving tips to construct the perfect paved edge CONTRACTORS PAVING RESIDENTIAL driveways face a broad range of challenges but one of the most perplexing is how to pave and construct unsupported edges so they look great and last a long time.

If you’re paving against a concrete patio or the side of house, the edge of your mat is not much of an issue. But when you don’t have an edge to pave against it’s important you set up a stringline so the operator has something to follow and to aim for. Setting up a stringline is a simple operation that not only provides the map for the operator but will let you know in advance of any unexpected challenges you might encounter. Are there plants in the way?

Do you need to bend the stringline around an object? How do you want the operator to handle that?

A good paver operator can easily follow the stringline to construct a nice straight edge. Without a stringline the edge will almost certainly be uneven and have wobbles in it, and because it’s unsupported those defects will be easy for the homeowner to spot.

Setting up a stringline will also help you “design” the driveway so it looks good. Do you need to shape the driveway where it flares out? The driveway might be 10 ft. wide all the way out but you might need a nicely shaped curve that flares from 10 to 16 ft. wide at the end where you back out into the street and so a vehicle doesn’t back over the grass.

A stringline will help you shape the job and will make sure you think the project through before you start placing mix. If you have no stringline to follow, the edge will meander.

Once the edge is constructed compact it with either a 36-in. lute (cleaned and lubricated) or a tamper maul. In addition to maintaining the straight edge the paver has placed, try to compact the

EDGES

edge on a 75-degree angle so it looks nice and straight and clean.

Other Edge Options That’s the manual approach and the approach most-often used by contractors.

But paver manufacturers have enhanced their equipment to help contractors construct perfect edges. Carlson Paving Products, for example, offers its Safety Edge, which actually drops below the mat and seals the edge as the paver moves along. That means you don’t have to cut the edge as you go along and you don’t have to tamp it because the Safety Edge has already sealed it.

Another approach is to rely on heated end gates, which are available on any paver. These heated end gates heat the mix at the end – just like the screed is heated. They heat the mix on the ground at the edge of the mat. The edge is sealed because the mix can’t go anywhere – it’s contained by the end gates. The combination of the pressure in the contained mix and the heat seals the edge.

vibration on the screed enables much better compaction at the end gate.

Monitor the paver’s feed system. This is the system that brings the mix from the hopper to the screed and eventually to the end gates. If you don’t pay attention to the feed system on the paver, and if the mix is flowing through the system unevenly, an uneven amount of mix will be delivered to the screed. This will cause a problem in the center of the mat but it will cause an even bigger problem at the edge because less mix will be delivered there. You’ll have an inconsistent amount of mix at the edge, which will make your edge uneven and inconsistent, too.

Screed Maintenance

Technical Tips

Maintenance is important, particularly where it concerns the screed. First, make sure end gate bolts are in place (they do tend to loosen and get lost). If they aren’t there, replace them. If they are there make sure they are tight because if they’re loose (or if they are missing) the end gates won’t hold the edge. The gates will slide up and down or back and forth. The edge won’t stay solid for you if the bolts are missing or loose.

Regardless of which approach you use to place mix, use vibration on the screed.

Many contractors forego this option on driveway work, thinking that vibration is not as necessary as on a parking lot or road. But that’s not the case. Using

John S. Ball, president of Top-Quality Paving (tqpaving@yahoo.com), will present four sessions at National Pavement Expo, Feb. 7-10 in Cleveland. For details on John’s sessions visit www.nationalpavementexpo.com.

82 January 2018 • PAVEMENT • www.ForConstructionPros.com/Pavement

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1/2/18 3:10 PM

Nick Howell

From the Owner’s Desk

Whoa, Back ‘er Up, Nick!

There’s more to backing up than the truck, trailer and paver

BEING A PAVEMENT maintenance contractor, we are always backing up, right? Back up the truck, back up the trailer, back up the paver... The one thing I didn’t back up last month was my QuickBooks.

Yeah...Welcome to the nightmare.

I was an early adopter of backing up company files, after watching a close friend and another asphalt contractor lose it all because they didn’t have a backup when a file failed. I was never going to let that happen to me!

I used Zip drives, which for those of you under 30, were high-capacity disk drives. Later I evolved to the common Flash drive, and my backing-up would be a regular process about every couple weeks...I thought.

That was until I happened to ruin my company data and realized my last back up was two months ago. After countless days and hours having Intuit Data Services try to rebuild my file, I was forced to face the reality that I had to find a way to rebuild lost data.

Fortunately Intuit was able to get me a read-only version of my recent file, so while I had to reenter data, I at least had most of my information available on another screen.

I never realized how losing simple things like who owes you money, whom you owe money too, sales reports, payroll etc. can cause the biggest nightmare ever. No, it wasn’t even the stuff we always talk about, either, like someone slipping in sealer or an overlay causing flooding. It was the nevermentioned simple mistake that caused the biggest headache. I’m afraid to admit that this may even be worse than losing my beloved iPhone!

The oddity of the situation is that backing up is easier than ever, so there’s no reason not to do it. For those of you

who are QuickBooks users, you have option of auto-backups to the cloud. For the less inclined, a simple flash drive will do the trick. Just take the time and make it happen – and make it happen often.

Experts suggest to backup weekly if not more often.

After asking around, I have found nearly none of my asphalt friends backup their files as often as they should.

Lesson learned for me....Back’er up Nick!

Nick Howell, president of T & N Asphalt Services, Salt Lake City, UT, has been a regular presenter at National Pavement Expo since 2008 and a member of the Pavement Advisory Board since 2007. This is his first column for Pavement Maintenance & Reconstruction. Let him know your thoughts on “From the Owner’s Desk,” and if you have a question or topic you’d like covered – let him know that too! You can reach Nick at nick@tnasphaltservices.com.

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ForConstructionPros.com/10075104

www.ForConstructionPros.com/Pavement • PAVEMENT • January 2018 83

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1/2/18 3:12 PM

Your Business Matters

Garry Bartecki

How to Combat Rising Rental and Used Equipment Costs What construction contractors need to know to keep costs down and ensure equipment is there when you need it EVERY CONTRACTOR should be interested in this topic, especially as rental rates rise, availability gets tight and used equipment prices increase.

Why would that be, you ask? For a number of reasons: • New equipment prices continue to climb.

• The oversupply of equipment due to the slowdown in the oil fields has finally been absorbed in the rental markets, thus pushing up used equipment values.

• The oil field impact in 2016 caused heartburn for manufacturers who wound up with excess inventory because users didn’t need to buy as many units as anticipated. To offset the heartburn, many manufacturers cut back on 2017 production, causing long lead times, thus lowering the turnover of rental fleets.

• Many rental companies are keeping rental units for an extended term and thus reducing used equipment availability.

• A mild winter along with stronger than expected construction work is reducing availability.

Add it all together and you get rental unit demand that is exceeding supply; more work that decreases rental fleet availability; and high utilization rates that support both higher rental rates and higher used equipment pricing. The bottom line: equipment availability is down and it’s driving up both rental and used equipment costs.

Ensure Equipment Availability The next step is to figure out how you deal with the above scenario into 2018.

It’s no secret that the American Rental Association is still projecting significant increases for the rental industry for the next five years. So far, their prior projections have been in the right ballpark, and I do not see any reason not to support their current outlook. When you consider how many rental outlets there are — combining both rental companies and equipment dealers with a strong rental initiative — it’s hard to imagine any slowdown in the rise of rental in the near future.

So what should you do? First, let’s deal with the availability question, because that’s the one that will cause the most heartburn for you and your profitability.

You may have more work this year, but it does you little good if you don’t have the equipment you need in the field when you need it. I don’t believe I will get much argument about that statement.

Consequently, I suggest you need to get your owned fleet up and running first and keep it that way to offset any availability issues that may occur this season.

It may cost you more than a rental but it has to be done. And when I say “done” I mean done, and not a six-week project that drags on until the end of the season.

If you can’t do it internally, ship it out to a dealer or rental company to do the fix.

Another tip regarding availability is to become an “important” customer to your rental provider. If you schedule out your projected needs in terms of time and type of units and work out an annual contract with the supplier, I can guarantee when you call, your request will go to the top of the list. This may not work 100% of the time, but it will supply benefits, especially if they are also repairing your down units.

If you’re in the market for used equipment, it will cost you more, but if you’re on the selling end, the higher prices can be a good thing.

Rates are another issue. Spending a lot of time trying to find a “cheap” unit may wind up costing you a lot more than the rate increase if you wind up with no unit at all and lose time in the field as a result.

So I suggest you live with it and work out what you can with your annual rental contract.

The Ups, Downs of Used Pricing Used equipment pricing will be both positive and negative for contractors. If you’re in the market for used equipment, it will cost you more, but if you’re on the selling end, it could be a good thing.

If you’re looking for a quality used piece of equipment, I suggest you check with the rental company for one of their older units that has a good maintenance history. If there are some things you don’t like about the unit, have them make the fix for a modest additional cost. Again, you need equipment to do the work without downtime, so it pays to get it work-ready before you buy it.

On the other hand, if you have units in your fleet that have low time utilization (for any number of reasons) and you don’t see an immediate need for them, now is the time to get them sold to free up cash for working capital purposes.

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.

84 January 2018 • PAVEMENT • www.ForConstructionPros.com/Pavement

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1/2/18 3:15 PM

NAPSA

WSA

NAPSA at NPE 2018 It’s the time that you have been waiting for, National Pavement Expo registration time!

The registration for NPE has started and that means that NAPSA will be sharing our sweeping track! As you know, NAPSA members receive FREE and GREATLY REDUCED education at NPE just by providing your NAPSA member number!

Below is the "sweepers' training" track: WEDNESDAY, FEBRUARY 7: 1:00 – 2:30 p.m. (A02) Risk Management and Error Recovery Tools to Protect Your Company 3:00 – 4:30 p.m. (A07) Succession Planning Success: How to Develop Your Strategy 6:00 – 7:00 p.m. NAPSA Membership Meeting and Reception 7:00 – 10:00 p.m. Sweepers CASINO Night Out! THURSDAY, FEBRUARY 8 8:00 – 9:30 a.m. (B14) Sweeper Maintenance for Reliability and Performance 9:30 a.m. – 12:30 p.m. (W7) Best Practices for Sweepers • Improving Sweeping Through Technology • Sweeper Maintenance Tips • Marketing and Environmental Compliance • Adding Your First Manager: Tips, Tricks and Traps • Standard Operating Procedures • Structuring Sweeping Companies at all Levels

2:00 – 3:00 p.m. Sweeping Key Managers Group 3:00 – 4:00 p.m. Sweeping Chicks 4:45 – 5:45 p.m. Sweepers Round Table FRIDAY, FEBRUARY 9 9:00 – 12:00 p.m. (W10) Navigate & Differentiate to Accelerate your Business in 2018 12:15 – 2:00 p.m. Certified Sweeping Company Luncheon Registration for NPE has started but be sure to use the code in order to get your three free and two discounted sessions.

Registration for Sweepers Night Out and the Certified Sweeping Company Luncheon are separate and can be found on the NAPSA website at www.PowerSweeping. org.

Contact the NAPSA office for assistance or information with registration for any of these events at 888-757-0130.

The North American Power Sweeping Association (NAPSA) is a nonprofit association made up of 200+ contract sweepers, service providers and sweeping equipment dealers, manufacturers and suppliers. NAPSA is dedicated to providing beneficial support to the membership and enhancing services to the sweeping industry. NAPSA is committed to promoting and educating the power sweeping community while enhancing the environment. For more information on NAPSA membership, please visit www.powersweeping.org or call (888) 757-0130.

Saying "No!" Starts at the Top

by Ranger Kidwell-Ross Heading into the New Year I intended my topic to be an encouragement for managers to better understand the importance of the word “no.” As in, teach your managers better time management by learning to say “no” to requests that stray from their job description.

However, in light of the recent spate of sexual harassment allegations sweeping our country, I want to discuss another topic on which to say “no.”

Few would argue against workplace safety and security being of extreme importance for any successful organization.

That said, there’s no way to eliminate sexism in the workplace until and unless everyone has a solid understanding of all that qualifies as harassment, sexual or otherwise. For example, some of your workers may think that casual comments to female employees like calling them ‘babe’ or ‘sweetheart’ isn’t something that might be considered sexual harassment… but it is.

According to the U.S. Equal Employment Opportunity Commission, “sexual harassment can range from unwelcome sexual advances to verbal conduct of a sexual nature if it interferes with work or creates a hostile environment.” As we’ve seen of late, female employees have long been repressing their outrage over what many men apparently considered to be acceptable behavior.

Besides creating that hostile environment the EEOC speaks to, a host of other negatives come into play when any kind

of workplace harassment is condoned or tolerated. Although current news has primarily focused on sexual matters, any disparagement of cultures, nationalities, color, weight and more can be equally insidious.

As has been seen, allowing harassment to take place on your watch can end up being very expensive, perhaps even years from now. Also important is that if negatives are allowed to exist in your work environment your organization will not ‘be all it can be.’

The buck stops at the top: Company management needs provide clear guidelines concerning actions that will not be tolerated. Then, don’t tolerate them. When you know when to say “NO!” you’ll find you will have a smoother running organization both today and in the long term.

WSA contributor Ranger Kidwell-Ross has been providing information to the power sweeping industry since 1988. He is editor of WorldSweeper.com, an information resource for power sweeping, as well as founder and executive director of the World Sweeping Association. For more information about WSA visit www.WorldSweepingPros.org or contact Kidwell-Ross at director@ worldsweepingpros.org.

www.ForConstructionPros.com/Pavement • PAVEMENT • January 2018 85

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1/2/18 3:16 PM

PCTC

Sealcoating Safety: Fact vs. Fiction

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Let’s clear up some common misconceptions to reduce confusion and encourage responsible, educated sealcoating decisions.

FACT: Refined tar-based sealants should be applied with caution.

Appropriate clothing is recommended when applying refined tar sealers, including long sleeves, full-length pants and work gloves. If refined tar sealers contact skin in the presence of sunlight, irritation can occur and applicators may experience “sunburn” effects. Depending on the method of application and weather conditions, a hat and face shield may also be appropriate. Protective creams are available to minimize skin contact with sealer and to block the sun rays that can enhance skin irritation. However, when proper handling and personal hygiene precautions are observed, skin irritation shouldn’t be a problem.

FACT: Refined tar-based sealant is not a significant environmental contaminant. Activists point to the U.S. Geological Survey (USGS) research to claim that sealants are the main source of polycyclic aromatic hydrocarbons (PAHs) in the environment. But USGS has been shown to have manipulated data and used circular reasoning in their sealant studies. Independent studies of New York Harbor and Puget Sound (Seattle) found sealant contributes less than 1% of PAHs to sediments in those locations. A recent independent statistical study of the Illinois River by the Universities of Illinois and Milwaukee-Wisconsin suggested a sealcoat contribution of no more than a few percent. The independent studies are consistent with industry-funded analyses.

FICTION: It’s bad for me that I can smell the sealcoat in the parking lot. Refined tar-based sealer has a very distinct odor that the human nose can detect at extremely low concentrations. The smell is primarily the presence of naphthalene, which has an odor threshold about 3 parts per billion (ppb), a very low concentration. To put this into perspective, the odor threshold for nail polish remover is 7,000 ppb. The American Conference of Governmental Industrial Hygienists states that the level of naphthalene that is considered safe for workers is 10,000 ppb. The difference between smelling it and worrying about it is huge.

FICTION: Pavement sealant – specifically refined tar-based sealants – are hazardous. Air sampling studies showed refined tar-based sealers pose insignificant inhalation risk to applicators, manufacturers or the general public. In fact, millions of people worldwide use coal tar soaps, shampoos and creams approved for use as over-the-counter medicines to treat skin disorders such as eczema and dandruff.

FICTION: Refined tar-based sealants are bad for my health.

Generations of family-owned companies in the business of making or applying sealcoat have zero reports of adverse chronic health effects – including cancer – that can be attributed to exposure to sealcoat. Coal tar is listed by the FDA as “generally recognized as safe and effective” active ingredients for use to treat these skin ailments with coal tar concentrations up to five percent in over-the-counter products. Many studies have been performed over nearly a century to see if patients who intentionally expose themselves to high level doses of coal tar for long periods of time have increased risk of cancer. All the studies have reached the same conclusion – there is no evidence of cancer.

To learn more, visit pavementcouncil.org/education

ForConstructionPros.com/10846286

86 January 2018 • PAVEMENT • www.ForConstructionPros.com/Pavement

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1/2/18 3:19 PM

Jessica Lombardo

Technology

How Connected Vehicles Make Work Zones Safer The Michigan DOT is partnering with 3M to make the nation’s first connected work zone on I-75 SINCE YOU HAVE to put orange barrels out along your work zone anyway, why wouldn’t you want them to do more than just sit there?

What if they even kept you safer inside your work zone?

That’s the thought behind 10 orange barrels that are lined up along three miles of a work zone down I-75 in Oakland County, MI. The Michigan Dept. of Transportation (MDOT) is partnering with 3M to utilize connected vehicle technologies along the current I-75 modernization project and technologically enhanced orange barrels are just a small part of that. The hope is that this project will improve safety for drivers and workers along the work zone, while testing advanced vehicle-toinfrastructure technologies on the connected and autonomous vehicles of the future.

The I-75 modernization project, which breaks 17 miles of roadwork into eight segments, will position Michigan to be among one of the first states to test connected vehicle infrastructure at this level of scale. As vehicles become increasingly automated and connected, existing road infrastructure must be updated to ensure safety and reliability of this emerging technology.

Signs, pavement markings, temporary traffic controls and vehicle identification systems need to be designed and

implemented to pave the way for the data-driven environment of the cars and roadways of tomorrow.

“Oakland County, where segment one of the eight segment project is located, is home to a lot of the Tier One suppliers and automotive researchers and developers making it a great project to test this technology on within close proximity to their headquarters,” Rob Morosi, communications specialist with MDOT says. “Plus with it being an interstate freeway, they are able to test at a lot of variables like ramps, traffic shifts, high speeds and more on a project of this caliber.”

Protecting Workers The work zone, which on a normal day can carry over 170,000 vehicles, was set up just like any other highway project, with barrels and signs set out at normal spacing, ten of those orange barrels however were special.

“3M provided us with ten orange barrels with an embedded 2D barcode inside it,” Morosi says.

“The barcodes are tools that infrared devices in the vehicles can read and communicate to both the vehicle and the driver.

Manufacturers are testing the messaging the vehicles receive from the barrels and how the vehicles are interpreting it.

“It’s been one thing for a vehicle to connect with another vehicle, but the big step with these barrels is allowing the vehicles to communicate with the surrounding infrastructure and vice versa.”

The hidden benefit of this vehicle-to-infrastructure communication is a safer work zone.

“This project is making the work zone safer for everyone; contractors that are out there, drivers using the work zone etc. This is an opportunity for us to build infrastructure that actually communicates to drivers about the dynamic work zone ahead of them, crew members on site and any shifts that may be happening.

All in hopes of creating an allaround safer environment.”

For example, drivers today see a sign indicating a lane is closed ahead. They read the sign, interpret it and change lanes when they choose.

With this new technology, the vehicle will also receive a lane closure notification from the connected infrastructure around it and notify the driver to react appropriately, in

hopes of improving safety.

In addition to the barrels, 3M provided MDOT with advanced all-weather lane markings, retroreflective signs with smart sign technology and 10 permanent dedicated short-range communication devices for vehicle-to-infrastructure communications once the barrels are removed. The updated, modern materials will allow for redundancy and greater machine vision, as well as improved driver safety on the roadways. Additionally, 3M will provide crews American National Standards Institutecompliant apparel with 3M Scotchlite reflective material to ensure proper worker safety throughout the project.

"We are always looking for ways to collaborate and innovate as the industry continues to evolve,” says John Riccardi, vice president and general manager, 3M Traffic Safety and Security Division. “The future of mobility requires an open ecosystem in which industry leaders connect and collaborate to create new technologies that improve our roadways.”

www.ForConstructionPros.com/Pavement • PAVEMENT • January 2018 87

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1/2/18 3:21 PM

Contractor Snapshot

Allan Heydorn, Editor

Working to Be “Better than Everybody” Affordable Paving & Excavating targets GCs, adds services & sweats the small stuff WHEN TOM SHUMATE started Affordable Paving & Excavating LLC 12 years ago, he had never run a paver.

But he knew how to run a business.

Today that fledgling company, located in Lititz, PA and started with only three people, has become a one-call solution for property managers and general contractors alike, according to Shumate. The 33-person company generates half its sales from paving and pavement repair, 35% from concrete and the remaining 15% from a changing mix of pavement demolition, excavating, sealcoating and striping, working on everything from driveways to parking lots to roads.

“We started right before the Recession and while everyone was going out of business we were growing bigger and bigger,” he says. “I never wanted to be just like everybody. I want to be better than everybody.”

Prior to becoming a paving contractor, Shumate had run a variety of businesses, including hosting concerts and festivals and running consumer trade shows in nine states. So he understood the business side.

“Part of the reason we’ve been so successful is me, my passion for running a business,” he says. “I never worked for another paver, I just bought a paver. And you know what? Blacktop is easy.

Learning how to run your own business is the hard part and I already knew how to do that.”

Working for GCs He says 50% of Affordable Paving’s work is for general contractors, doing mostly paving and concrete. “We get a lot of those jobs because they don’t have to call one contractor for asphalt and one for concrete because we do both.

“We’re a favorite of GCs right away because of our performance,” Shumate says. “It’s a hands-on kind of thing. I don’t try to micromanage but I keep my hands on to make sure the quality is there. Quality over quantity will win every day. You might not make as much money that first year but if you pursue quality over quantity you’ll make much more money in the long run... And you won’t lose your business.”

“Quality over quantity will win every day.”

Adding Excavation Shumate says the company was first started as Affordable Paving, without any excavating.

Then, when it was time for them to build their own 60-ft. x 120-ft. steel building, they rented the equipment and handled all the excavating.

“We had people who did excavating for a living telling us how good a job we did,”

he says. “So we realized we could provide that service ourselves instead of subbing it out.”

It also gave them more control over “ I n ev e r w that aspect of a ev e ry b o d n te d to b e ju s t li k e their paving y. I wa n t to b e b e tt e r th a n ev e ry operation and b o d y.” put them even another step closer to being a full-service paving contractor – something he says GCs paying attention to detail. especially found appealing.

“The parking lot is striped to specification, our stripes ADA Experts are straight, we compact the He says they get a lot of calls for pavement the way it’s supposed renovation of parking lots – in to be compacted, and we particular parking lots that need warranty all our work. We can to be brought into compliance warranty it because we do a with the Americans with quality job. If we did a lousy job Disabilities Act (ADA). we couldn’t warranty it. Nobody “We’re experts on ADA,” bats 1.000 but we stand behind Shumate says. “We know those our work and if there’s ever a regulations inside and out. We problem we go back and fix it.” can go in there and do any He says a good example demolition needed, any paving of Affordable Paving & whether it’s concrete or asphalt, Excavating’s attention to detail and then we can stripe it to is how the company handles specifications. So a property work within a development as manager can bring their parking a subcontractor to a GC. Before lot into compliance with the Affordable Paving turns the ADA with only one phone call.” job back over to the developer to turn over to the village, A Focus on Details Affordable Paving’s crews Shumate says his hands-on pressure wash all the manhole approach to business is only one lids to remove any debris. Then aspect of providing quality work. they paint them black.

“We don’t cheat people and “Nobody does that,” he says. we don’t skimp on the details.”

“It might be a small detail but it From start to finish, from the looks great and the village can’t first meeting with the customer believe it.” until the invoice goes out we’re

88 January 2018 • PAVEMENT • www.ForConstructionPros.com/Pavement

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1/2/18 3:22 PM

PAVEMENT Published by AC Business Media Inc.

Index Advertiser Index

PAGE

1-800-Pavement

Insert

Almon Equipment Ltd.

53

Asphalt Reheat Systems LLC

50

Auto Lock Transport Systems

50

Billy Goat

50

Boyd Equipment

56

Carlson Paving Products Inc.

91

Cimline Pavement Maintenance Group

9

Copperstate Hose

48

Crafco Inc.

11, 63

Crum & Forster

38

Deery

72

Dynapac Fayat Group

70

Elgin

5

EZ-Liner

56

Gem Seal Pavement Products

2

Go I Pave

67

Gorman-Rupp Pumps

33

Graco Inc.

17

GuardTop

51

Kasi Infrared

27

Keystone

54

Keystone Plastics Inc.

54

K-M International

46 – 47

Laser Point Lasers

86

LeeBoy

19

M-B Companies Inc.

48

MRL Equipment Company Inc.

59

National Pavement Expo

Outsert

REPRINTS Denise Singsime at (800) 538-5544 ext. 1245 dsingsime@ACBusinessMedia.com.

Neal a Division of Blastcrete Equipment

13

Nealco Equipment LLC

29

Next Generation Power

58

LIST RENTAL Elizabeth Jackson, Account Executive, Merit Direct LLC, Phone: (847) 492-1350 ext. 18 • Fax: (847) 492-0085 • ejackson@meritdirect.com

Neyra

60

Nighthawk Sweepers

49

Pavement Maintenance Supply Warehouse Inc.

48

Paynes Lines and Signs

53

ProCru

66

Quik Pave Products Inc.

45

Reelcraft

69

Right Pointe

86

Schwarze Industries

57

SealMaster

92

Seal-Rite

52

Southern Emulsions Inc.

10

Spaulding Mfg. Inc.

53

Star-Seal

23

Stepp Mfg.

58

Sweeping Corporation of America

65

T & N Asphalt Services Inc.

12

Tymco

6

Unique Paving Materials Corp.

55

Vance Brothers

83

Waterblasting Technologies

61

Weiler

39

Wirtgen America Inc.

7

Wright Striper

54

201 N. Main Street | Fort Atkinson, WI 53538 800.538-5544 • www.ACBusinessMedia.com www.ForConstructionPros.com/Pavement Editorial Office: Allan Heydorn, 2339 Stratford, Westchester, IL 60154 (708) 531-1612 | Fax: (708) 531-1613 | aheydorn@ACBusinessMedia.com PUBLICATION STAFF: Publisher: Amy Schwandt Editor/Conference Manager: Allan Heydorn Associate Editor: Jessica Stoikes Art Director: April Van Etten Ad Production Manager: Patti Brown Sr. Audience Development Manager: Wendy Chady Audience Development Manager: Angela Kelty ADVERTISING SALES: (800) 538-5544 Tom Lutzke, Eric Servais, Sean Dunphy, Amy Schwandt, Erica Finger, Denise Singsime FORCONSTRUCTIONPROS.COM WEBSITE: Digital Operations Manager: Nick Raether Digital Sales Manager: Monique Terrazas Editor: Larry Stewart Managing Editor: Kimberly Hegeman CHANGE OF ADDRESS & SUBSCRIPTIONS PO Box 3257, Northbrook, IL 60065-3257, Phone: (877) 201-3915 Fax: 847-291-4816 • circ.pavement@omeda.com

AC BUSINESS MEDIA INC.: Chairman: Anil Narang President and CEO: Carl Wistreich CFO: JoAnn Breuchel Editorial Director: Greg Udelhofen ADVISORY BOARD: ACI Asphalt Contractors Inc., Maple Grove, MN: Jim Bebo Asphalt Contractors Inc., Union Grove, WI: Robert Kordus Asphalt Restoration Technology Systems, Orlando, FL: Connie Lorenz Capitol Sweeping Service, South Windsor, CT: Thomas Kuhns Clean Sweep Inc., Chattanooga, TN, Pete Phillips Custom Maintenance Services, Shippensburg, PA: Michael Nawa Eosso Brothers Paving; Hazlet, NJ: Tom Eosso Parking Lot Maintenance, Lake St. Louis, MO, Todd Bruening Petra Paving, Hampstead, NH: Chris Tammany Pioneer Paving, Albuquerque, NM: Don Rooney Robert Liles Parking Lot Service, Tyler, TX: Robert Liles Roberts Traffic, Hollywood, FL: Lisa Birchfield Roccie’s Asphalt Paving, Stamford, CT: Vincent Engongoro Rose Paving Co., Bridgeview, IL: Alan J. Rose Show Striping Inc. (SSI), Wisconsin Dells, WI: Amber Showalter T&N Asphalt Services, Salt Lake City, UT: Nick Howell The Rabine Group, Schaumburg, IL: Gary Rabine Young Sealcoating Inc, Lynchburg, VA: Steve Young ASSOCIATION REPRESENTATIVES: Pavement Coatings Technology Council: Anne LeHuray, Executive Director

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Tailgate Talk

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Brad Humphrey

You Can Be a “Leader on a Mission” IF THERE IS one challenge every contractor and construction leader must overcome, it is to be so focused on their “mission” that nothing can stop them from reaching their destination.

The 2018 National Pavement Expo, Feb. 7-10 in Cleveland, is out to be the best yet. And I can’t wait to be there and to meet with those “thoroughbreds” our first day for our full-day workshop, Leaders on a Mission 2018.

While we will be addressing several critical “mission worthy” topics, let me share a teaser for one of the learning objectives. For every pavement maintenance contractor, the importance of business development can never be over-emphasized.

Business development should be as natural to the

pavement maintenance contractor as breathing. As an owner or senior leader, nothing can take first place over getting work. Yes, I know safety is huge and making money is huge, but if you don’t acquire more work, you do not even get to make your sites safe or make the higher profit margins.

Consider a few Business Development (BD) techniques that will be expanded on in Cleveland.

BD EFFORTS ARE 24-7!

There is no Monday through Friday and 8:00 AM – 5:00 p.m. with Business Development. As the owner, there is never a time when you are not “selling” something about your business. Since most people like to work with those whom they can trust and

enjoy, it makes sense that the owner must always be “on.”

BD IS FOR ALL COMPANY EMPLOYEES! I don’t care how big a company you are, everyone participates in the acquisition of work. Sure, only a few will actually develop the bids, but every employee, from the receptionist to the operator to the truck driver, can be BD-focused when they are working through the week.

And, if your employees are wearing company logo shirts and jackets, they better realize that they are representing your company even on their personal time. People may not remember the person’s name, but they will sure has heck remember your company name on their shirt or cap.

Humphrey to Present 6 Sessions at NPE 2018 In addition to “Leaders on a Mission 2018,” Brad Humphrey’s day-long boot camp Feb. 6 (one day prior to National Pavement Expo), Humphrey will present six additional sessions including: • Coaching Winners: Your #1 Leadership Priority, Feb. 7 from 9:00 a.m. - Noon • How to Make “Quality” Your Employees’ #1 Obsession, Feb. 7 from 1:00-2:30 p.m.

• No Bad Jobs! How Pre-Job Planning Improves Each Project – and Your Bottom Line, Feb. 7 from 3:00-4:30 p.m.

• How to Stop “Selling Price”… and What You Should Sell Instead, Feb. 8 from 8:00-9:30 a.m.

• 5 Secrets of Effective Teamwork – For Contractors, Feb. 8 from 10:00-11:30 a.m.

Humphrey will also team with Guy Gruenberg, Grow Consulting, on a 3-hour “working” session titled Confronting 2018’s Critical Issues: How Creating an Adaptable Operation Helps Every Business Thrive on Feb. 8 from 1:00-4:00 p.m. In what they term “an engaging, highly interactive workshop,” Humphrey and Gruenberg will focus on “why structuring your business and training your key people to be flexible – and readying your operation to quickly adapt to market conditions good or bad – is essential to your success and growth.”

Humphrey and Gruenberg will also provide a 2018 update of the markets that drive the paving and pavement maintenance industry – commercial, industrial, residential, municipal – including how those customers might be changing, and what that might mean to your business.

For details National Pavement Expo, Feb. 7-10 in Cleveland, visit www.nationalpavementexpo.com.

BD SKILLS CAN BE TAUGHT! There are no born leaders and there are no born sales people.

Now, there are certainly people who might find it easier to interact with others but that alone doesn’t qualify them as a BD individual, much less an estimator or sales person.

Business Development “skills and techniques” can be taught and learned.

BD RESULTS SHOULD REWARD ALL INVOLVED! If your field foreman happens to pass on a lead that turns into work, the foreman should receive a little financial “kicker.” Giving workers a little bonus money if they have enabled you to gain more work will motivate them to be more alert to future opportunities.

If you are truly committed to making 2018 the best year yet, then you really need to attend my Leaders on a Mission 2018 full-day workshop.

Trust me, I’ve got some fun activities planned to bring out the best in you and any of the folks you bring.

Brad Humphrey is President of Pinnacle Development Group, consulting firm that specializes in the construction industry. See more of Brad’s advice for contractors by reading The Contractor’s Best Friend, also an AC Business Media service to the construction industry. For more information about Brad’s company, go to www.pinnacledg. com.

90 January 2018 • PAVEMENT • www.ForConstructionPros.com/Pavement

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