Ew0515combined by Tony Brock

equipmentworld.com | May 2015

2015

CONTRACTOR

YEAR

of the LAWRENCE MERLE GENESEE CONSTRUCTION SERVICE DANSVILLE, NY

Merle’s commitment to quality and integrity, combined with a passion for philanthropy, allows him to rise to the top of his field

P.24

Competitive financing available through Daimler Truck Financial. For the Freightliner Trucks dealer nearest you, call 1-800-FTL-HELP. FTL /MC-A-1368. Specifications are subject to change without notice. Copyright ÂŠ 2014 Daimler Trucks North America LLC. All rights reserved. Freightliner Trucks is a division of Daimler Trucks North America LLC, a Daimler company.

HELPING TEX-MIX KEEP THEIR PAYLOAD MOVING WHILE LOWERING THEIR REAL COST OF OWNERSHIP. Tex-Mix is only as profitable as their trucks are reliable. That’s why they choose Freightliner. We design trucks for easy upfit, productivity and low maintenance. Backed by a support team that’s there when you need us. And because Tex-Mix trucks are equipped with the powerful Detroit DD13 ® engine and Detroit Virtual Technician onboard diagnostic system, it’s not only a tough truck, but also a smart one. Built to increase profitability and lower their Real Cost of Ownership. We’re proud to say that’s why Freightliner has become the industry leader in work trucks. TM

To learn more about how Freightliner Trucks are working hard for Tex-Mix, visit FreightlinerTrucks.com/Tex-Mix.

9,500 MORE LOADS. $1,400

THE RULES HAVE CHANGED.

Watch the D Series in action. CX210D

*Load data and fuel usage are per year and based on CX300D in SP Mode. Fuel usage data is based on average diesel price per gallon of $2.75 as of 4/13/15 per US EIA. Load capability and fuel usage depend on mode of operation for all units.

LESS FUEL*. ONE MACHINE.

Meet the remarkably faster AND more fuel-efﬁcient D Series. Get more buckets per hour, more hours per tank, more done sooner than you ever dreamed possible. It’s a revolution in the way material is moved. See what operators are saying at CaseCE.com/DSeries.

CX250D

CX300D

CX350D

©2015 CNH Industrial America LLC. All rights reserved. CASE is a trademark registered in the United States and many other countries, owned by or licensed to CNH Industrial N.V., its subsidiaries or afﬁliates.

The KOHLER Diesel KDI is a Tier 4 final with common-rail fuel injection and no DPF. So you skip the DPF maintenance costs, get savings at the pump, and laugh all the way to the bank. 速

KohlerEngines.com/KDI

T270 Class 6 / T370 Class 7 18,000 and 20,000 lbs. front axle options now available for the T370

Work Truck Rockstar. T370 Class 7

K270 Class 6 / K370 Class 7

T370 Front Drive Axle 4x4

For Vocational Applications » Quality: Premium Kenworth quality built into every custom Medium Duty truck » Reliability: PACCAR PX-7 or PX-9 engines with ratings to meet all of your powertrain requirements » Durability: A robust chassis built to withstand extreme conditions » Low Lifecycle Cost: Lower operating cost, maximized uptime and proven performance » Designed to do the job: Custom built for work applications, including front drive axles » Heritage: Medium Duty trucks built on a heavy-duty foundation » Superior Maneuverability: Up to 55 degree turning radius for off-road conditions

Learn more and find a dealer near you at www.kenworth.com Free 2-year extended warranty: Just finance through PACCAR Financial by Dec. 31, 2015. Ask dealer for details.

on record | by Marcia Gruver Doyle

MGruver@randallreilly.com

Ten deaths in15 days

rom April 1 -15, equipmentworld.com reported on 10 fatal accidents, ranging from a 4-ton pipe rolling from a wheel loader that crushed a worker in California to a crew member killed in a trench collapse on a New York City jobsite. Ten deaths in 15 days, and we may have missed a few. Quite frankly, we’ve gotten some grief for our reporting of jobsite deaths and accidents. Perhaps the people complaining don’t like so much mayhem with their morning coffee. Why not focus on the good and positive (and I suppose the birds chirping cheerfully overhead)? My counter: nothing wakes up a safety toolbox talk like the realization “this happened to them and it could happen to us.” Yes, these fatality reports do have a touch of the old journalism saw of “if it bleeds, it leads.” But I think

“

it’s good they generate website traffic. The more the word gets out about how real-world deaths happen, the more awareness everyone has of the everyday hazards in this industry. In January, when a Kokosing Construction employee was crushed in an excavator cab in a bridge demolition that went horribly wrong, Kokosing president Brian Burgett released a statement that said in part, “We want to know exactly what happened that day. We want to be sure nothing like this happens again.” The ache in his words was palpable. No contractor reading them would want to have to repeat them. We want to echo Burgett’s statement: knowing what, how and most important, the why behind these accidents is part of the safety information process, one we hope contributes to a time when there are fewer accidents to report.

This happened to them and it could happen to us.”

EquipmentWorld.com | May 2015 11

reporter | by Equipment World staff

Caterpillar doubles down on dedication to equipment data with Analytics and Innovation division

ollowing through on a promise to work to begin rolling out predictive diagnostic improvements to its Produc Link telematics service, Caterpillar has created a new division within the company that will focus solely on data and producing new ways for its customers to put the information to work. The new Analytics & Innovation (AI) division will be led by Cat vice president Greg Folley, who has led the Reman, Components & Work Tools (RCWT) division since 2011. Cat says the new division will work to create a “connected analytics ecosystem,” and manage the company’s relationships with third-party

providers like Uptake. In March, Cat announced it had made a minority investment in Uptake, an analytics firm the company began working with in

2014. Cat CEO Doug Oberhelman said the aim of the investment is delivering heavy equipment operation data to customers in order to allow them to manage their fleet proactively, or from a,

“repair before failure stance.” Cat says it will place some of the new AI division employees in Chicago with Uptake to accelerate the development of that predictive diagnostics platform. “We can transform the mountains of incoming data – from a single machine or engine, an entire job site, the supply chain, a shipping location and much more – into valuable information for our customers and suppliers more efficiently and effectively than anyone else,” says Rob Charter, Cat group president of Customer & Dealer Support. Current VP of Strategic Services Doug Hoer will replace Folley as the head of RCWT. – Wayne Grayson

Number of deficient bridges down in 2014, but 61,000 remain in USDOT listing

hile there were approximately 2,000 fewer structurally deficient bridges in the United States last year than in 2013, there are still more than 61,000 that fit that category, according to an American Road & Transportation Builders Association

(ARTBA) review of the 2014 U.S. Department of Transportation National Bridge Inventory database. Pennsylvania leads the list with 5,050 structurally deficient bridges, followed closely by Iowa at 5,022. The District of Columbia has the least at

14, followed by Nevada (34), Delaware (48), Hawaii (61), and Utah (102). ARTBA Chief Economist Dr. Alison Premo Black reviewed the report, which shows 61,064 structurally deficient bridges in the U.S. are crossed 215 million times every day, with the most (continued on next page) EquipmentWorld.com | May 2015 13

reporter | by Equipment World staff (continued from page 13) travelled being on the Interstate Highway System. “State and local governments are doing the best they can to address these significant challenges, given limited resources,” Black says. “Many of the most heavily traveled bridges are nearly 50 years old. Elected officials can’t just sprinkle fairy dust on America’s bridge problem and wish it away. It will take committed investment by legislators at all levels of government. Without additional investment from all levels of government, our infrastructure spending will be a zero-sum game.” Citing USDOT data, Black

also said there is a current backlog of over $115 billion in bridge work and $755 billion in highway projects. Her analysis of the report also found: The 250 most heavily crossed structurally deficient bridges are on urban interstate highways, particularly in California. Nearly 87 percent of these bridges were built before 1970. At least 15 percent of the bridges in eight states – Rhode Island (23 percent), Pennsylvania (22 percent), Iowa (21 percent), South Dakota (20 percent), Oklahoma (18 percent), Nebraska (17 percent),

North Dakota (16 percent) and Maine (15 percent) – fall in the structurally deficient category. – Chris Hill

Construction firms donate $1 million to establish high-tech construction safety lab at Oregon State University

wo North Dakota construction firms have donated a large grant in order to help establish the premier laboratory in the United States for the study of industry safety in Oregon. Knife River Corp. and MDU Construction Services Group have donated a combined $1 million to establish the lab at Oregon State University in Corvallis. The lab will be called the MDU Resources Group Construction Safety Laboratory, bearing the name of the two firms’ parent company. The lab will bring workers in and drop them into simulations of real-world jobsite situations and dangers through an interactive, high-definition projection system. The lab will 14 May 2015 | EquipmentWorld.com

also have a driving simulator to study operator behavior and what actions workers take inside a work zone full of equipment and other vehicles.

OSU researchers say the aim of the lab is to establish safety considerations as an element of the design phase of construction, resulting in projects that are not

only safer to occupy but safer to build and maintain as well. “There’s a long history in the construction industry of architects and design engineers leaving construction safety up to the builder or contractor, saying it wasn’t really the designer’s concern,” said OSU professor of civil engineering John Gambatese. “Some of this dates historically to the separation between owner, architect, contractor, maintenance and construction worker. There are also legal and liability issues. But there are many ways we can improve construction safety with this approach.” No opening date has yet been set for the new lab. – Wayne Grayson (continued on page 16)

reporter | by Equipment World staff (continued from page 14)

DOT uses “work zone simulation room” to showcase dangers of road construction

iting data saying 23 highway workers are killed each month in the United States, the Ohio Department of Transportation invited the public to get a feel for just how dangerous road work can be. ODOT opened a “work zone simulation room” that demonstrated work with cars whizzing by using high-definition footage taken from jobsites. The DOT says more than

5,100 crashes occurred in its work zones last year with 1,000 people being injured and 17 killed. Nine highway workers have been killed on ODOT jobsites since 1973 and the department recently began requiring drivers to shift over one lane when passing a vehicle with flashing lights. If changing lanes isn’t possible, the DOT asks drivers to slow down when passing these vehicles. – Wayne Grayson

Briefs Case CE moves precision services under SiteSolutions

Case Construction Equipment has moved all of its precision services, such as telematics, into one group of services named Case SiteSolutions. The company says this move will create a “360-degree” business solution system for customers, and make equipment data gathered “more practical and intuitive” for contractors to use. The move starts with the extension of the factory-ready machine control offering for dozers, as well as the continued expansion and connectivity of its telematics solutions. The company has more than tripled the number of machine parameters transmitted by Case SiteWatch telematics, from 12 to 40. In addition, Case has created a hardware update for its AM53 modem that adds 3G connectivity. This also includes the technology available through Case’s partnership with Leica. To train contractors to better use the data they’ll have available through the system, Case will be launching Case SiteSolutions Academy on its website in June of this year, covering equipment operation, best practices and entry-level training.

Briefs

IronPlanet, Cat Auction Services complete merger The merger between Cat Auction Services and IronPlanet, announced in December, was completed April 2. IronPlanet now has a customer base of 1.3 million registered users and offers weekly online auctions. The merger with Cat Auction Services adds onsite auctions to IronPlanet’s formerly online-only format. IronPlanet will retain the CAS branding at these events. Jeff Jeter, president of the Americas for IronPlanet, said there will likely be 10 live onsite sales each year at the outset.

16 May 2015 | EquipmentWorld.com

TRAIL

KING’S

HDG

WE BUILD IT

SO YOU CAN HAUL IT THE ALL-TIME BEST SELLING DETACHABLE ON THE MARKET

HYDRAULIC DETACHABLE G O O S E N E C K

ENGINEERED WITH HIGH PERFORMANCE STANDARDS • Arched Gooseneck Design for ample clearance even at lowest king pin setting • 5-Position Gooseneck Door Adjustment allows for a full 8” range of king pin height settings • One-piece Main Beam Web and Flange Construction eliminates the potential for weak points

in high stress areas

• 10” I-beam Crossmembers on 12” centers in outer bays • Covered Knuckle/Boom Trough allows for low-profile transport • Sealed Electrical System and rubber-mounted LED lights reduce maintenance costs • A 3rd Lift Axle offers on-the-road versatility • Adjustable Ride Height Control conveniently located near rear tail channel • Heavy-Duty Pullout Front Outriggers at concentrated weight pivot point provides extra strength

VISIT US AT ICUEE – THE DEMO EXPO AREA N #2034 | SEPTEMBER 19 – 21, 2015 KENTUCKY EXPOSITION CENTER

Have a heavy haul? Contact your nearest TRAIL KING dealer or call 800.843.3324 to learn more.

marketplace | by Amy Materson | AMaterson@randallreilly.com

S OR’ T I ED ICK P

INTELLIGENT CRAWLER DOZER Komatsu America’s D155AXi-8, the first intelligent machine control crawler dozer in its size class, is designed to handle a range of highway construction, large residential or commercial site prep projects. The dozer features a 354-horsepower Komatsu SAA6D140E-7 Tier 4 Final 15.24-liter diesel engine that enables the machine to emit 80 percent less NOx than the Tier 4 unit the D155AXi-8 replaces.

The machine’s intelligent control has the ability to sense and control blade load, which Komatsu says delivered up to an 8 percent efficiency boost in moving material compared to aftermarket machine control systems during a grading test. Having no blade-mounted sensors eliminates the need to climb on the blade to install or remove GNSS antennas, or deal with snagged cables. For maximum efficiency, Komatsu has included an automatic gearshift transmission and lock up torque converter that enables the operator to select the best gear range depending upon both the jobsite conditions and the load. By transferring engine power directly to the transmission, horsepower loss is eliminated, and fuel consumption is reduced by up to 10 percent. The addition of Komatsu’s Sigmadozer blade, which is designed to roll up soil at the center of the blade, ensures reduced digging resistance. According to the company, the blade dozes up to 15 percent more soil compared to semi-u blades, while using less power.

EquipmentWorld.com | May 2015 19

marketplace | continued

NEW CHASSIS OPTION

Vactor Manufacturing’s HXX HydroExcavator, which features a 3,000-psi variable water multi-flow pump with DigRight technology, is now available with the Peterbilt 567 Class 8 truck model chassis. Suitable for harsh environments and difficult work conditions, the new chassis option provides reduced weight, increased payload capacity and improved maneuverability. The standard aluminum cab structure meets severe-service requirements and features strategically placed steel reinforcements to boost strength and rigidity. Chassis system routing improvements include new air and fuel hard lines, and the separation of air, fuel, diesel exhaust fluid and electrical systems routings, enabling

simplified installation, service and repair. The cab is quiet and comfortable, with a steering wheel with tilt and telescoping capabilities. An easy-to-read gauge panel and 5-inch color Driver Information Display provide critical information, and a secondary panel can house up to six optional gauges or Peterbilt’s SmartNav system. Additional features include a panoramic windshield, forward-positioned dash brow with integrated tray, backlit switches and a hanging pedal design with floormounted feel and actuation. The HXX has selectable pressure of 1,500, 2,500 and 3,000 psi, and is available in a variety of configurations.

CLOUD-BASED CONSTRUCTION

Experience a turnkey solution to customize construction applications with On Center Software’s Oasis, a cloud platform that allows for seamless takeoff and estimating integration. The platform includes Oasis Takeoff, which enables users to collaborate on current project documents and access the same information in real time, minimizing costly errors and redundant or wasted efforts. Oasis FieldCenter provides real-time access to current project plans in both the field in the office through the ability to connect the field management app directly to the takeoff and estimating information. The secure cloud-based system ensures current data is shared throughout the company from a single source, and is customizable and expandable based on current needs. 20 May 2015 | EquipmentWorld.com

“IT’S EQUIVALENT IF NOT BETTER THAN THE OTHER ONES ON THE MARKET.”

Randy Kersten, owner – Kersten Construction, Inc. Omaha, NE

Scan the code or go online to see why Randy runs Doosan.

DoosanEquipment.com/Randy 1.877.745.7814 Doosan and the Doosan logo are registered trademarks of Doosan Corp. in the United States and various other countries around the world. ©2015 Doosan Infracore Construction Equipment America. All rights reserved. | 169A-0

marketplace | continued SUPERIOR SUCTION

Safety identify buried utilities with Ditch Witchâ&#x20AC;&#x2122;s FXT60 truck vacuum excavator, which handles heavy-duty cleanup jobs and soft excavation tasks such as potholing. Equipped with a 74-horsepower Deutz diesel engine, the FXT60 delivers 1,027 cfm of suction power, and has a high-pressure water system with a 5.5-gpm, 3,000-psi water pump. The choice of a 500-gallon spoils tank with a 200-gallon water tank, or an 800-gallon spoils tank with a 400-gallon water tank allows the operator to handle any size cleanup job. The unit is designed for mounting on truck frame rails, allowing the system components to flex independently of the truck to boost structural integrity. The FXT60 mounts to any single-axle truck, enabling cost control and customization. The easily accessible controls and service points ensure convenience, and curbside controls can be configured for right- or left-hand traffic for safety. The minimal overall height

provides a low center of gravity and improved handling during transport. Saddle-style tanks provide weight distribution to keep the payload over the rear axle. Additional features include an integrated tool rack on the door, underbody hose storage system, remote-fill water tank, hydraulic locks on the hydraulic door and an auto clutching feature that disengages the water pump when not in use. Options include a heater, arrow board, cold water kit and 14-foot boom.

COMPATIBLE CLAMPS

Perform a variety of demolition, site prep and landclearing applications with wedge lock clamps from Doosan, which work with multiple bucket widths ranging from 23 to 60 inches. Designed to work with Doosan DX63-3 to DX350LC-5 excavators, the eight main pin clamps and seven pro-link wedge lock clamps provide precise movement and positioning. The clamp attachments are compatible with wedge lock buckets and quick couplers, and retract when not in use.

EXPLOSION-PROOF PUMPS

BJM Pumps’ XP-KZN heavyduty submersible explosion proof pumps feature a top discharge, slim-line design with agitator specifically designed to suspend heavy slurries such as those containing coal, ash, sand, gravel or other abrasive materials. The agitator helps to keep the solids suspended in liquid, allowing the pump to resist clogging. Along with the impeller and wear plate, the agitator is manufactured from abrasive-resistant 28-percent chrome iron. To boost performance, the replaceable wear plate has a hardened surface on the suction side. The XP-KZN also features built-in amperage and temperature overload protection, has double silicon carbide mechanical seals in a separate oil filled seal chamber, a heavy duty lip seal and hardened cast ductile iron volutes.

PORTABLE FUEL FILTRATION Boost equipment uptime and remove harmful contaminants with the CLEANDiesel Filter Caddy from Parker Hannifin, which is used to clean fuel in long-term storage in small tanks. Designed for generator tanks and small bulk storage tanks up to 2,000 gallons, the Filter Caddy is self-contained and portable. Suitable for use in the jobsite, the Filter Caddy has a 40 mesh basket strainer, 5-micron water coalescing filter and 6-gallon waste holding tank. Using the included wands and hoses, the Filter Caddy draws fuel from the bottom of the tank and returns the fuel to the upper portion of the tank, avoiding the formation of bacteria and rust.

ONE VS MANY

COMPACT TRACK LOADERS FACE OFF. SEE WHO WINS GOING HEAD-TO- HEAD. Before you buy your next loader, watch compact track loaders perform in head-to-head competitions, or take a side-by-side look at the performance, serviceability and durability features that impact your potential profit. Not only do the videos show you which loader performs best for your rental customers, they explain the small details that increase customer utilization and reduce your downtime. Watch all the videos at BobcatAdvantage.com/CTLFaceOff1 or scan the code and find out who comes out on top.

BobcatAdvantage.com/CTLFaceOff1

1.877.745.7813

contractor of the year

| by Amy Materson |

AMaterson@randallreilly.com

2015 CONTRACTOR of the B

YEAR

efore taking his first construction job, Moving north the only knowledge Larry Merle had Falling back on his accounting degree never of the industry was “Mike Mulligan became necessary. After college, Merle went and His Steam Shovel,” a classic chilto work for a large firm in South Carolina, but dren’s book his mother shared with didn’t like the way the company ran its business. him as a child. The story of Mike and his shovel He consulted with his wife, Mary Ann – who Mary Anne became his favorite, and his mom he swears he didn’t marry because she shares a read it to him every single name with Mike Mulligan’s night at bedtime. steam shovel – and the So when he took a summer couple made the decision job in Coalport, South Caroto move to New York State. Dansville, NY lina, working for a construcThey settled in Dansville, an tion crew while in college in hour south of Rochester, and Genesee Construction Greenville, he immediately Merle started work with a site fell in love with construction, prep contractor. Year started: 1996 even though he was only Almost right away, Merle making $3.65 per hour. knew he needed to open his Number of employees: 25 But even that $3.65 job own shop. He approached Annual revenues: $11 to $13 million dried up, so Merle pursued two potential partners and Markets served: Paving, concrete, another construction company said, “Why don’t we start doutility, general construction 75 miles away. After Merle’s ing this?” Out of that convergrandfather found out he sation, Genesee Construction was making prevailing wage at $17 an hour on Service was born. Starting as a subcontractor his new job, he was actually upset about the salperforming mostly small jobs, the company grew ary – he was afraid Merle would quit school and to the point where Merle and his partners began work construction full time. He stayed in school, to work on projects as a GC as well, and the however, figuring he could work construction after building side of the business became as large as he graduated, but he would also have his account- the site work side. In 1999, the company reached a crossroads. ing degree to fall back on if necessary. Working as many as 70 hours per week, Merle was able to Merle wanted the capability to build a gymnasave enough every summer to pay for college. sium as part of a philanthropic project, but felt it

Lawrence Merle

24 May 2015 | EquipmentWorld.com

“Our industry can be stereotyped,” Merle says. “So, as cliché as it sounds, I always take the high road. I want the work to be a continuation of the client’s image.”

EquipmentWorld.com | May 2015 25

contractor of the year wouldn’t be fair to his partners. He told them he wanted to go out on his own, and offered to sell his shares of the business. Instead, they made an arrangement where Merle would take the shares of the business, and the two partners would take the company’s equipment and continue with another company. So, Merle and just three employees went to work.

Building a business On paper, Merle was no more assured of success than any other fledgling start-up. In reality, he knew he possessed the tools to build Genesee into the company it is today. He knew it wouldn’t be easy, so he asked Mary Ann to quit her job and help him. He bought an old excavator at auction, which his wife said was the worst looking piece of equipment in town. “It looked like it had been rolled down a hill and then thrown into a dumpster,” he recalls. “But I paid $21,000 for it, put 3,000 hours on it, and then sold it for $17,000.” Merle had a strategy in mind. He knew the ins and outs of site prep work, and being both first and last on a jobsite has its advantages. He made the decision to continue operating as a site prep contractor, but to also work a general contractor. It’s something Merle says few contractors in the area have been able to accomplish successfully, but the strategy has served Genesee Construction well, enabling the company to take on diverse projects. “Our forte now is fast and furious,” he says. “We specialize in unrealistic schedules.” He’s serious about the meeting budgets, and on the correct timeline. In 15 years, Genesee has never missed a deadline. Ecstatic clients The fast-paced attitude, combined with a sterling reputation, works to Genesee’s advantage in attracting customers. International Speedway Corporation, the company behind 26 May 2015 | EquipmentWorld.com

| continued

Watkins Glen International Raceway, hired Genesee as a replacement contractor for the racetrack’s new Media Center. When Merle agreed to the project, it was three months behind schedule, in the middle of winter, with no design, plans, specifications or drawings. “Genesee was able to pull a rabbit out of their hat by completing the project ahead of schedule,” says Paul J. Bellas, senior project manager for International Speedway.

commercial and retail space. “Larry was able to exceed expectations for the project while retaining the 1916 brick architecture,” he says. “The armory had been abandoned for 40 years, so it was a monumental project to do the environmental cleanup and reposturing.” A highly technical project, the armory is composed of two buildings with 180,000 square feet that required the installation of more than 550 helicals on the bedrock.

Although Merle has encouraged his children to find a career path they love, for daughter Mary Ellyn, it turned out to be construction.

“Every original program element was incorporated into the project ahead of schedule. If I could convince Larry to travel, I’d hire Genesee for work at all 12 of our NASCAR facilities.” Genesee was also tapped by Frederick Rainaldi, owner of Rochester-based development firm FJR Associates, to work on a project with substantial challenges. Rainaldi had purchased a World War I armory from the State of New York and wanted to turn it into a mixed-use

Last fall, the project received an award from the state on the adaptive reuse of the site, and Rainaldi now uses Genesee as his point of contact with even the most sensitive clients. “My clients like Genesee’s team members so much they call them directly instead of calling my management team,” he says. “They’re the most trustworthy contractors I’ve ever worked with.” Rainaldi says many of the highend retailers he develops sites for

contractor of the year come with built-in contractors, a situation he’s been able to start to change. “With Larry, we’ve managed to take away the interior buildouts,” he says. “He’s the first contractor able to pull jobs away from them. I would point to him as an example for the industry to follow.” The company now has mix of projects, with 65-percent developernegotiated work, 10- to 15-percent public work, and small fill-in jobs as the balance. The bulk of Genesee’s work is from repeat customers, and Merle says every job he’s currently working on is with someone he has had at least a 10-year relationship with. To maintain those relationships, he believes you have to be open, honest, and stand behind your work for the long term. “I have a lifetime warranty on my work – I’d be a fool not to,” he says. “It is so freeing to do what’s right.”

“Hire for character, train for skill” Genesee’s employees love the work, and say Merle is the best contractor to work for in the area, by far. Saying he hires for character and integrity, and trains for skill, Merle has built a workforce he feels is second to none. “My guys have a tremendous sense of pride,” he says. “They’ll bring their wives to one of our projects and say to them, ‘I did that.’” Brad West, a heavy equipment operator on Genesee’s dirt crew, says Merle is the best boss he’s ever had. “Larry offers superior pay, benefits, vacation, holidays and bonuses,” he says. “Former coworkers will call me and ask, ‘Can you get me on with Larry?’” West says Merle sets the bar high, but he’s a people person who puts his employees first. “Not only can you go to him with a problem, you can go to him with your ideas,” he says. “I wish I’d found Larry earlier.” Another benefit the employees love is the ultra-safe environment on Genesee’s jobsites. Dissatisfied with 28 May 2015 | EquipmentWorld.com

| continued Genesee Construction is the GC on twothirds of the company’s projects, but still self-performs the site work.

the options available from associations and insurance providers, Merle decided to come up with his own safety program. When he wrote the safety guidelines, Merle included what he felt was the best information from all sources, including from Europe and Australia, countries he says often have more stringent guidelines than U.S.-based programs. He implemented a safety award, and has also instituted a program that tracks near misses – not to place blame, but to educate.

Two-way loyalty He asks his employees to present a professional, dedicated image – providing them with clothing that helps them adhere to a standard of dress – and he also requests they refrain from using profanity on the jobsite, out of respect for the client. A strong believer in promoting from within, Merle has implemented

a process that enables workers to move up within the company. Made up of a written and a practical test, the system assigns an operator class to employees based on their proficiency on a number of machines, and allows them to receive incentive compensation. Interns, who make $8 per hour at other companies, are paid $12 per hour by Genesee. His employees bend over backwards to help Merle in any way they can. When he noticed via the equipment tracking apps installed on his phone that his equipment idle time was at 22 percent, he asked his operators for help in reducing that number. Within a week, idle time had dropped by 50 percent. Merle promptly calculated the savings and returned a portion to the employees as a bonus. Merle has shown his appreciation for his employees’ loyalty in ways few contractors can. During

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contractor of the year the recession, he refused to lay off a single employee, choosing instead to take a personal pay cut to allow the company to thrive.

Implementing a growth plan Although he has maintained steady growth, preferring to be the best rather than the biggest, Merle is now making long-term plans to allow his people to take on more management roles within the company, including running their own show. “For people who want to work, the sky’s the limit,” he says. “To allow people to grow, the organization will need to grow.” With that in mind, he’s brought in or promoted some key players who will shape the business. His daughter, Mary Ellyn, who has worked for the company in one capacity or another since junior high school, is now the firm’s director of marketing and communications. Her brother Jonathan, currently studying at Roberts Wesleyan College in Rochester,

| continued

will only join the firm if that’s the path he chooses, Merle says. He also brought in a project manager, Rich Tyler, who had worked for a larger organization that had worked on a job with Genesee. Tyler impressed Merle right away. “He wasn’t a typical project manager,” he says. “He didn’t sit in the trailer and tell people to take care of things – he gained the respect of my employees.” The opportunity to work for Merle attracted Tyler for a number of reasons, including being a part of the company’s growth and succession planning. “There were no layers of management,” he says. “They push the schedule and the projects. With larger organizations, there’s a lot of process to deal with.” Tyler also liked the way Merle’s mind works. “He’s willing to accept ideas, but cautiously,” he says. “And he’s willing to try new things, but smartly.” The succession and growth plan is not going to be put into place to

allow Merle to retire and live a life of leisure; he says he can’t imagine a time he wouldn’t feel the need and the drive to work. His family knows he is and will remain obsessed with construction – at Christmas, they presented him with a collector’s 1935 edition of Mike Mulligan and His Steam Shovel – and they expect him to drive the company forward. Rather, the growth plan is an opportunity to allow family and employees to experience some of the benefits and gratification of ownership Merle himself enjoys. For Merle, a man who once bought 13 pigs at a 4-H auction to prevent low bidders from walking away with the fruits of the children’s labor for a steal, continued growth also allows him to continue with his philanthropic work, which includes mission trips to Ghana, additions to a local school and providing assistance to the area’s food pantry. “I’m living The American Dream, and I want to give back,” he says.

Transforming an abandoned WW1-era armory into an award-winning mixed use space was the most challenging project he’s ever completed, Merle says. The project not only had environmental issues, but also required hundreds of helical piers.

30 May 2015 | EquipmentWorld.com

CONGRATULATIONS

to the 2015 Contractor of the Year winner and finalists IN

Lawrence Merle

Andrew Allen

Jason Ciavarro

Sean McDowell McDowell Construction Corporation Menomonee Falls, Wisconsin

Supreme Metro Corp South Plainfield, New Jersey

R.J. Allen, Inc. Garden Grove, California

Joseph Delgado

Andrew Brown

Dan Corrigan

Bradley Grubaugh

TCW Construction Lincoln, Nebraska

Andrew Brown General Engineering, Inc. Paso Robles, California

C-3 Environmental Specialties Schertz, Texas

Bradley Excavating, Inc. Colorado Springs, Colorado

Genesee Construction Service Dansville, New York

David Spurr

Allen & Tyson Feller

Spurr Company Paso Robles, California

Feller Enterprises St. George, Utah

Timothy Humerick Humerick Environmental Construction Service College Grove, Tennessee

Sponsored by:

Jeff Pettiecord & Nick Wylie J Pettiecord, Inc. Des Moines, Iowa

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RENTING AN AIR COMPRESSOR Do your homework and pay attention to hoses and safety regulations

ompressed air tools offer a number of advantages in many construction applications. They are powerful and versatile and you can use them in conditions where there is water on the ground or flammable material nearby with out fear of shock, fire or explosions. But if you are heading out to the rental store to get a diesel-driven air compressor, there are a few things you need to check before you go. And once you get the compressor on the jobsite, everyone who is going to use it or work around it needs to know the proper operation and best safety practices. Big air compressors have unique operating characteristics and OSHA

The Atlas Copco XAS 185 portable air compressor puts out 185 cfm using a 49-horsepower John Deere engine. Discharge valves are on the same end as the waist level control panel and easy access to oil filters and the oil separator tank simplify maintenance. governs their safe operation in many cases. Ignorance could lead to an expensive maintenance mistake or worse yet an accident and injury to one of your crew.

Rotary screw Most engine-driven air compressors for construction applications use what’s known as a rotary screw design. Here, twin screws interlock side by side and turn inside an increasingly narrow air chamber, and thus pressurize the air, says Rus Warner, global air products manager, Doosan Portable Power. The power and efficiency of rotary screw compressors is such that they don’t need air storage tanks. They can supply their full rated capacity instantaneously on demand,

even when you’re working with multiple tools. They are designed for continuous duty. On newer models with electronically governed engines the engines speed up as

What’s SCFM?

Some manufacturers will list their air compressors’ scfm, which translates into standard cubic feet per minute. But this is more of an engineering or testing spec that rates the compressors output at sea level and 68 degrees Fahrenheit, says Rus Warner. The cfm and scfm ratings are going to be fairly close except at high altitudes or extreme temperatures. If in doubt, check with your rental expert, especially for large scale or industrial applications that will require high volumes or pressure. EquipmentWorld.com | May 2015 33

maintenance | continued the demand for air increases. The most popular sizes of these air compressors come integrated into their own trailer for easy towing with a pickup. Larger units may be skid mounted or transported on flatbeds, especially when you get into the bigger sizes for industrial applications like sand blasting. For a visual demonstration of how rotary screw air compressors work check out the YouTube video at: http://www.youtube.com/ watch?v=S08sj8pfJJs. Or just go to YouTube and type “How a Compressor Works” in the search box.

Piston/reciprocating For smaller tools and applications that demand less air there are reciprocating or piston style air compressors. Some of these are also engine driven, diesel and gasoline and some run off electrical power. Reciprocating air compressors use a piston to pressurize air and store it in a large air tank. These are typically used to supply air to nail guns, paint guns and some of the smaller impact wrenches that mechanics will use. Other than size and capacity, the main operational difference between reciprocating and rotary screw air compressors is that the stored air in reciprocating compressor’s tank may run low and cause you to wait while it recharges. Your rental store can help you determine the right size tank and proper horsepower needed for the tools you’ll be using. Reciprocating air compressors once dominated the air compressor market, but because they have more moving parts, their service life was shorter and maintenance was more expensive. “If a reciprocating compressor can operate in a given application without running extended periods and without too many start/stops, they are a good choice,” says Eric Massinon, business development director for Chicago Pneumatic. “But if the application requires extended run times or 34 May 2015 | EquipmentWorld.com

a continuous load, then the rotary compressors are a better choice.”

Getting the size right Sizing a rotary screw air compressor to the application is a straight-

forward process. There are two measurements to consider: cfm (cubic feet per minute) and psi (pounds per square inch). Simply add up the cfm requirements of any tools you’ll be using simultaneously

A single piece, lockable, lightweight canopy over Doosan’s C185 air compressor is aerodynamic and impact resistant. The fenders and bumper are also made from high strength plastic and a three-step paint process resists corrosion and adds longevity. The unit produces 185 cfm.

The VMAC Underhood70 installed in a 6.7L Ford Super Duty.

Underhood air that’s always available

If you occasionally need air but don’t want to run to the rental store every time you do, take a look at VMAC’s underhood air compressors. These are custom engineered to fit in the engine bay of a wide variety of trucks including Ford, GM, Ram, Jeep, Mercedes, International and Sterling. They’re powered by the vehicle’s serpentine belt and you can get models that deliver 70 or 150 cfm and up to 175 psi. They’re rotary screw designs that give you on-demand air and come with airoil separators and oil coolers. http://vmacair.com.

maintenance | continued and choose the air compressor that meets that number while delivering the required psi. But don’t show up unprepared and think you can get away with a guesstimate. “Using a compressor that provides too little airflow starves the tool of power, which reduces productivity,” says Rich Elliott, product manager, low pressure air compressors, Atlas Copco Construction Equipment. “And picking a compressor that produces more cfm than needed might slow your ROI because they generally have higher price points.” Most compressors will allow you to adjust the cfm and the psi within certain ranges, but beyond those ranges there is no room for fudge factors. “You can lower your pressure within reason, but you don’t want to go too low because there is a tank that separates the oil from the air before it goes out and there are filters in there. You can collapse your filter system and damage the machine if you push it too low,” says Warner. The rental store can supply you with the cfm/psi numbers for the compressor, but for tools such as impact wrenches and breakers, the information may be a hard to find. Contact the tool manufacturer or look it up online before you head out to avoid downtime, subpar performance, or damage to your tools later. If you’re renting for a long time or considering a purchase or rentpurchase agreement you’ll also want to look closely at the fuel efficiency and maintenance costs as well, Elliott says. See the Air requirements for Tools chart at right for estimates of what different types of tools require in air flow and pressure.

Hoses There’s a lot to consider about hoses when renting and using an air compressor. First make sure the hoses are rated for the pressure and temperature of the application and 36 May 2015 | EquipmentWorld.com

sized for the flow rate required, says Massinon. Also note that you will lose some pressure depending on the length of hose and diameter, says Elliott. On a typical 1-inch diameter hose the crew will lose about five psi for every 50 feet of hose, he says. You will also lose pressure for every coupling in the air hose, Elliott says. “So if you need to operate far from the compressor, such as in a building, you might need to increase the psi to ensure you get the right pressure for optimal productivity.” When I doubt, ask your rental center to do the calculations for you, he says. Pressure losses also result from kinks and bends in the hose. Using a hose coiled up on the ground

Vanair’s Viper Series towable air compressors come with either gas or diesel engines. The rotary screw compressors deliver up to 80 cfm at 150 psi.

Brush up on compressed air safety AEM produces a pneumatic tool safety guide. For $5 it’s well worth your money if you’re just getting into pneumatic applications or if you need a refresher course. You can order it here: http://shop.aem.org/p-155-pneumaticconstruction-tool-safety-manual.aspx?

Air requirements for tools Below is a general guide to the air demands of specific categories of tools, but again get brand specific numbers before you choose an air compressor. Tool

Air requirements

Brad nailer

0.5 to 2 cfm/30 to 50 psi

Framing nailer

4 to 6 cfm/50 to 120 psi

HVLP spray gun

16 to 20 cfm/ 30 to 60 psi

1/2” impact wrench

5 cfm/ 90 psi

Chippers-hammers

30 cfm/100 psi

Breakers, 60 pound

75 cfm/80-100 psi

Breakers, 90 pound

90 cfm/80-100 psi

Jackhammer

115 cfm/80-100 psi

Piercing tools

15 to 130 cfm/110 psi

Pipebursting tools

90 to 1,700 cfm/110-200 psi

Concrete dowel drills

20 to 500 cfm/80 to 90 psi

Sandblasting

11 to 450 cfm/50 to 140 psi

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maintenance | continued is just asking for inefficiency, says Warner. “We recommend contractors place the compressor as close to the work as possible,” he says, “because you want to use the minimum amount of hose possible.”

Hoses should also be inspected before use every day, says Warner. Inevitably they’re going to lie on the ground, get stepped on and run over by vehicles. So look for abrasion, punctures and holes. Also be careful how you store and transport hoses. Don’t abuse them or let them sit next to anything hot like an exhaust muffler or turbocharger, he says.

The Chicago Pneumatic CPS 185 has an adjustable height hitch and with 185 cfm has enough flow to power two 90-pound breakers. Automatic temperature and low oil pressure shutdowns protect the engine and a galvaneal sheet metal enclosure reduce compressor engine noise.

Air compressor safety If there is a weak link anywhere in a compressed air system it is the connection between

the compressor and the hose and the male/female metal connector fittings between lengths of hose. Should a fitting blow apart under pressure, the loose end can whip around dangerously. People have been killed this way. An air hose restraint system like the WhipChek holds the two ends of the hose together preventing them flailing around. OSHA requires “some positive means” like this of securing the tool to the hose (OSHA Standards 29 CFR, 1926.302); www.whipchek.com. Another way to prevent hose whip is to install a safety check valve, sometimes called an OSHA valve. The reason they’re called OSHA valves is because OSHA requires them on any hose with an inside diameter greater than 1/2inch (OSHA 29 CFR, 1926.306). Placed between the air compressor air nozzle and the hose fitting, if the valve detects a sudden drop

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A hose restraint system like this one from Whipchek is required by OSHA for connections on high pressure hoses.

in pressure it closes shut and prevents any more air from entering the hose. “OSHA valves are sized for the pressure and flow rate required by the tools to be used,” says Massinon. “For this reason there is no one-sizefits-all OSHA valve. That’s why OSHA valves are not a standard feature supplied on portable compressors.”

Filters and water For many applications you will want an air filter and water separator on your air compressor. Compressed air inevitably contains small amounts of dirt, water and oil that can damage tools or interfere with finishes. Clean, dry air is good for any application but aftercoolers and water separators are essential for paint and sandblasting operations. If you have a compressor with a filter and condensate

remover, be sure to check them every day.

Tier 4 maintenance Most of your typical 185 cfm/100 psi portable air compressors use engines small enough that they don’t need diesel exhaust fluid or a diesel particulate filter to clean their exhaust emissions. But ask about the engine maintenance requirements before you head down the highway, especially if you are towing a larger compressor. If your system uses diesel exhaust fluid you’ll probably need to fill the reservoir once for every tank or two or three of diesel you burn. And a diesel particulate filter may need periodic regeneration to burn off the accumulated soot inside the filter. On some models this may require you to cease work until the regen is completed.

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EquipmentWorld.com | May 2015 39

road science | by Tom Kuennen

TRB: NEW RESEARCH CHANGING HOW YOU WILL BUILD BRIDGES

Eliminate approach ‘end bumps’ with new slab system Differential settlement in Louisiana leads to what are called “end bumps” at the approaches to bridges there, posing a safety hazard as well as being disruptive to motorists. But researchers at Louisiana State University say they’ve come up with a new construction design incorporating precast deck slabs paired with geotextile-reinforced approach embankments that will solve the problem. These bridge approaches, which connect the bridge deck to the adjacent pavement, are normally built with reinforced concrete slabs. The Louisiana Department of Transportation and Development, however, received complaints about the roughness of the transition between the bridge abutments and embankments: “Field observations indicated that either faulting at the roadway pavement/approach slab joint (R/S joint) or a sudden change in the slope grade at the approach slab/ bridge joint (S/D joint, shown in Fig. 1) causes this ‘bump’,” say the research authors1.

sion bridges in isolated areas. Each of these topics will change how bridges will be built in the future, and they were among the themes in bridge design and construction that were presented at the 2015 Transportation Research Board meeting.

Image: Chen and Abu-Farsakh

liminating the “end-bump” in construction of bridge approaches ... precast deck panels speeding bridge construction ... quick seismic retrofits for bridge piers ... and how rockets can speed construction of suspen-

Fig.1: Illustration of approach slab and its interaction with soil in Louisiana.

To solve the problem the LaDOTD considered changing the design of approach slabs where differential settlement is expected. The state wanted to find a solution that makes approach slabs strong enough to allow them to lose a portion or all of their contact supports without causing detrimental deflection. “In this solution, the flexural rigidity of the approach slabs is increased through increasing both the slab thickness and the rein-

1 Mitigating the Bridge End Bump Problem: A Case Study of a New Approach Slab System with Geosynthetic Reinforced Soil Foundation, by Qiming Chen, Ph.D., P.E., and Murad Y. Abu-Farsakh, Ph.D., P.E., Louisiana Transportation Research Center, Louisiana State University, Baton Rouge.

forcement ratio,” the authors write. “Consequently, some embankment settlement will be allowed without decreasing the ride quality. As a result, the slab dead load and traffic live loads will be carried by the two ends of the slab rather than distributed over the length of the slab.” Accordingly, the local soil pressures beneath the strip footing (or “sleeper slab”) increase, resulting in an increase in the faulting deflection. This can be solved by use of For more information about the 2016 meeting, or to obtain the full papers, visit www.trb.org. EquipmentWorld.com | May 2015 41

road science | continued geosynthetics to reinforce the soil beneath the sleeper slab, thereby increasing the soil’s bearing capacity, helping redistribute the load to wider area, and thus reducing the sleeper slab’s settlement, they researchers say. To validate this approach, several research projects were initiated by LaDOTD. Field performance – including deformation and internal stresses of the concrete slabs, contact stresses between slab and embankment, stress distributions within the reinforced soil foundation, and strain distributions along the geogrid – was monitored for two years. The authors concluded: • The west approach slab of the Bayou Courtableau Bridge, with the new design method, retained its contacts and supports from the embankment soil during the first static load test (at the time when the bridge was ready for traffic). However, during the second static load test, after about a year and half, the west approach slab lost most of its support from the embankment soil. • On the other hand, the east approach slab, with the traditional design method, showed slightly gradual loss of its contacts from the embankment soil starting from bridge abutment side towards the pavement side. • The roughness profiles demonstrated better performance of the new approach slab system (west approach slab) compared to the traditional design method (east approach slab) with much lower International Roughness Index values.

Connections, grout influence prefab deck panel success Accelerated bridge construction depends on the use of precast, prestressed and otherwise prefabricated bridge elements and systems, but their success depends on how well 42 May 2015 | EquipmentWorld.com

they are implemented. New research from TRB2 indicates that connections and grouts used are the weakest links in the process, but application guidance is available that will ensure long-life performance. Noting that prefab deck panels have gained popularity, the authors of the paper point out the primary challenge for deck systems is the connectors, typically made using interlaced connector elements and field-cast grout. “Poor detailing and design considerations have been shown to pose problems with deck durability, serviceability and ultimate capacity,” the authors say. For this research, a series of precast deck panel connection tests were carried out at Federal Highway Administration’s Turner-Fairbank Highway Research Center to further understand deck-level connections under realistic performance demands. Several design variations – including shear key shape, reinforcement type, joint material type, and precast surface preparation – were investigated. “Seventy two large-scale, deck-level connection assemblies were tested in four-point bending and subjected to cyclic crack loading, fatigue loading, and monotonic loading until failure,” the authors say. The three loading protocols allowed researchers to assess the durability, serviceability and ultimate strength of the connections. Their conclusion: the performance of these connections “is heavily influenced by the grout and the precast component interface surface preparation.” They also determined: • The selection of grout materials is a critical design consideration for deck-level prefabricated bridge elements and systems connections. This assumes that lap splice

•

lengths have been selected such that bond failure does not occur. Depending on the grout material selected, surface preparation of precast concrete deck panels can have a significant impact on tensile bond resistance of the panel-togrout interface. Although epoxy grout and ultrahigh performance concrete grout systems have higher initial cost, they could provide better value when long-term performance and required maintenance are considered. Non-shrink cementitious grout and magnesium phosphate grout may lead to durability issues as a result of poor bond to precast concrete regardless of surface preparation, and poor performance under repeated loading. An exposed aggregate surface preparation preformed the best for promoting bond between precast concrete components and cementitious grout connection materials. The epoxy grout exhibited good bond with precast concrete regardless of the surface preparation.

Hybrid jackets for quakedamaged bridge columns Hybrid jacketing – made up of a thin cold-formed steel sheet wrapped around an earthquake damaged reinforced concrete column – offers a fast solution to getting bridges reopened following a seismic event, says one research team.3 Such a jacket, which is also supported on the outside by prestressing strands, was tested using a large-scale RC column with a deficient lap splice (where two pieces of rebar are overlapped to create continuous reinforcement), typical

2 Experimental Evaluation of Prefabricated Deck Panel Connections, by Zachary B. Haber, Ph.D., Professional Service Industries, Inc., and Benjamin A. Graybeal, Ph.D., P.E., Team Leader, Bridge and Foundation Engineering, at FHWA’s Turner-Fairbank Highway Research Center, McLean, Va. 3 Hybrid Jacketing for Rapid Repair of Seismically Damaged Reinforced Concrete Columns, by Mostafa Fakharifar, Genda Chen, Ph.D., P.E., Mahdi Arezoumandi, Ph.D., and Mohamed ElGawady, Ph.D., Missouri University of Science and Technology, Rolla.

road science | continued

Seismically damaged column repair procedure with the hybrid confining jacket. From left to right, damaged column; patched column with repair grout; sheet metal wrapping; prestressing strands application of pre-1970 bridge constructions in the central United States. The testing was done in mid-Missouri, a seismically active state. Results from original and repaired columns were compared by several factors, including strength, stiffness,

ductility and energy dissipation. The authors concluded the hybrid jacket was effective in “restoring structural behavior of the damaged column to prevent bridge collapse.” Other points in its favor: it’s a lightweight, quick to field product, cost-effective

solution that can be implemented in hours. The researchers also found: • The initial stiffness is [only] partially restored, due to existing damage in concrete and reinforcement.

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Build remote suspension bridges using rocket-powered cables China’s centuries-old prowess in gunpowder and fireworks now has a new application: the use of rockets to fire the “pilot” or initial guide ropes

for suspension bridges across voids in remote, mountainous areas, according to a 2015 TRB paper from China.4 There are many pilot rope erection methods as part of the suspension bridge construction; these include water towing, manual hauling and air traction, the authors say. But these all may not be available for construction of suspension bridges in rugged, remote areas, now being reached by China’s growing highway system. “For constructing long-span suspension bridge[s], erection of [a] pilot rope is the first step of the superstructure construction, which provides the foundation for the load-bearing cable catwalk traction system to be constructed [following] the pilot rope,” the authors note. “However, erection of pilot rope under certain mountainous

terrain conditions can be extremely challenging.” The Yunnan Puli long span bridge is a 3,412-foot suspension bridge in the Karst region of China, crossing a canyon more than 1,968-feet and extremely steep on both sides. Ever-changing weather and thick vegetation covering the ground made it difficult to erect the pilot rope using the traditional methods. After comparing three types of erection methods, the researchers experimented with the rocket traction method for erecting the pilot rope. The project demonstrated that the rocket traction method has benefits, including easy preparation, fast erection, is cost-effective and environmentally friendly, and is particularly suited for use in the mountainous region.

4 Use of Rocket Traction Method to Span Pilot Rope for Long Span Suspension Bridge Construction in Mountainous Area[s], by Dajin Guo and Xiao Li, National Engineering Laboratory For Surface Transportation Weather Impacts Prevention, Tuodong Rd., China; Wenhuan Zhou and Mingfang Hu, Research Institute of Highway, Ministry of Transport, Beijing; Zhengfu Yu and Guobang Xia , Puxuan Highway Project Headquarters of Yunnan Province; Wei Liu, Beijing Zhongjiao Ruida Technology Co., Ltd., Beijing; and Biyu Yang, Department of Transport of Yunnan Province, Kunming.

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FLEET PROFILE

MarciaGruver GruverDoyle Doyle| | MGruver@randallreilly.com MGruver@randallreilly.com contractor of the year |bybyMarcia

What do sewer/water contractors finance?

To get a closer look, we delved into the equipment financing habits of a sample of contractors who work in this segment.

The Deere 310K backhoe was the most popular machine in terms of units financed in our sample of contractors.

ewer/water contractors finance a wealth of equipment, but typically favor excavators, backhoes and wheel loaders, according to information from Equipment Data Associates. Here are the details: (continued on next page)

Our sample We examined the 5-year financed buying habits of contractors who were identified by both the Standard Industry Code 1624, water sewer pipeline construction, and by the National American Industry Classification System Code 237110, water and sewer line and related structures construction. This report is taken from Equipment Data Associates information, which tracks

Uniform Commercial Code-1 finance filings; since these filings are typically added within 45 days of recording, we chose the March 1, 2010 to Feb. 28, 2015 time frame for this report. During that time period, a total of 1,662 companies within this sector purchased 22,182 pieces of equipment, including 8,755 new machines and 13,427 used machines.

EquipmentWorld.com | February 2015 47

FLEET PROFILE

sewer/water contractors (continued from page 47)

Types of equipment As they were with excavation and road building contractors (reported in February and March), excavators are the top financed machine of choice in the sewer/water segment in both new and used equipment, ranging between 21 to 25 percent of the total financed new machines for this sample in the past 5 years. In the top new machine type chart below, the 2,165 excavators financed were more than double the backhoes, in the No. 2 position at 1,097 units. The gap between excavators and backhoes becomes even larger when looking at financed used units: 3,035 excavators to 1,248 backhoes.

Top USED machine types financed*

Top NEW machine types financed* Machine type

No. of Percent range of total units financed market for financed segment

Excavator

2,165

21 - 25%

Backhoe

1,097

9 - 12%

Wheel loader

939

9 - 12%

Compact excavator

890

8 - 14%

Compact track loader 431

4 - 6%

Horizontal drill

319

3 - 5%

Crawler dozer

271

Skid steer

The top used financed machines for this segment mirror the top new buys, with the exception of Class 8 trucks, which at 822 units and 5 to 8 percent of the total number of used machines purchased has a much stronger showing on the used equipment list than on the new equipment list. In addition, two machines appear on the used equipment list that do not appear on the new list: single-drum vibratory compactors and motor graders. Also, horizontal drills, a key production machine, do not appear on the top used list.

Machine type

No. of Percent range of total units financed market for financed segment

Excavator

3,035

21 – 24%

Backhoe

1,248

8 – 11%

Wheel loader

1,137

8 – 10%

Class 8 truck

822

5 – 8%

Crawler dozer

707

4 – 7%

Compact excavator

653

4 – 6%

2 - 4%

528 Single drum vibratory compactor

3 – 5%

233

2 - 4%

LGP dozer

308

2 – 3%

LGP dozer

180

2 – 3%

Articulated truck

308

1 – 3%

Class 8 truck

132

1 – 2%

Motor grader

247

*Sewer/water buyer financed buys made between Mar. 1, 2010-Feb. 28, 2015. Source: Equipment Data Associates, edadata.com.

Models purchased When looking at just the sewer/water segment of contractors, not only is the backhoe the second most popular machine purchased in terms of number of units, the John Deere 310 K backhoe was the most popular new model sold in the past five years. Its predecessor, the Deere 310J, also had the No. 3 position in top models financed (the chart tracks machines purchased new throughout the 5-year period, so there is a mix of current and previous models). To round out the Deere K Series mention on this chart, the 410K came in at No. 5 and the 310SK was No. 10.

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quick data | by Marcia Gruver Doyle

Articulated trucks

MGruver@randallreilly.com

A snapshot of new and used sales trends from Randall-Reilly’s Equipment Data Associates and TopBid auction price service.

Top financed new articulated truck*

Auctions

Cat 740B, 424 units

Artic auction prices, 2009-Feb. 2015 $140,000 $135,000 $130,000

High: Dec. 2011

$125,000

130,233

$120,000 $115,000

Average:

109,177

$110,000 $105,000

Other top selling machine: Volvo A40G, 207 units

$100,000 $95,000 $90,000

Auction prices for the top 10 models of articulated trucks have been on a steady decline since August 2014, when these machines averaged $121,752 at auction. During the past 5 years, the average auction price for these models was $109,177.

$85,000 $80,000 $75,000 $70,000 $65,000 $60,000

Top financed used articulated truck*

Current/Low: Mar. 2015

85,658

Cat 740, 157 units

2010

2011

2012

2013

2014

Mar.

Jan.

Oct.

Jul.

Apr.

Jan.

Oct.

Jul.

Apr.

Jan.

Oct.

Jul.

Apr.

Jan.

Dec.

Jul.

Apr.

Jan.

Oct.

Jul.

Apr.

PRICE

Jan.

$55,000

2015

Trend prices for the top 10 models of articulated trucks sold at auction, not seasonally adjusted. Source: TopBid, topbid.com

340,000

Five-way tie for top auction price:

• 2011 Cat 740 with 2,212 hours, Ritchie Bros. Auctioneers Int’l on Dec. 17, 2014 in St. Louis. • Three 2013 Komatsu HM400-3s, at 3,000, 3,280 and hours and 3,6 34 hours, Ritchie Bros., Dec. 10, Minneapolis. • 2012 Komatsu HM400-3, 3,212 hours, Ritchie Bros., Dec. 10, Minneapolis.

Final bids

00 0 , 0 $34

AVERAGE

0 75,

HIGH

Apr. 1, 2014-Mar. 31, 2015; prices for articulated trucks 5 years old and newer, U.S. sales only. Only includes bids $5,000 and above. Source: TopBid, topbid.com

LOW

unit count: 137

New

Articulated truck buying patterns* 3,000 2,750 2,500 2,250 2,000 1,750 1,500 1,250 1,000 750 500 400 300 200 100

UNITS

96 7 , 6 $21 Used

Used high: 2005, 2,120 units

* Mar. 1, 2014 to Feb. 28, 2015. Source: EDA, edadata.com (Note: EDA reports are continually updated.)

Top financed articulated truck brands*

Over a 12-month period, Caterpillar had 42% financed market share, followed by Volvo at 30%. Komatsu and Deere both had 10%.

Caterpillar, 1,422 units

Volvo, 1,029 units

Deere, 354 units

Komatsu, 352 units

Top three states for articulated truck buyers* 1 Texas, 175 buyers

Florida, 93 buyers

North Carolina, 86 buyers

*New and used articulated trucks financed Mar. 1, 2014 to Feb. 28, 2015. Source: EDA, edadata.com

Used low: 2009, 992 units

New, used articulated trucks year-over-year change* New high: 2006, 1,629 units

2005

2006

NEW Up 36%

New low: 2010, 104 units

2007

2008

*Financed equipment, 2005-2014. Source: EDA, edadata.com

2009

2010

2011

2012

2013

2014

USED Up 3%

*Comparison of number of articulated trucks financed Mar. 1, 2014 to Feb. 28, 2015, and Mar. 1, 2013 to Feb. 28, 2014. Source: EDA, edadata.com

EquipmentWorld.com | May 2015 63

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Weâ&#x20AC;&#x2122;re Celebrating Public Works! There would be no community without the quality of life public works provides. There would be no community to police and protect, no public to lead or represent. Public works allows the world as we know it to be - community begins here. Join us in celebrating the tens of thousands of women and men in North America who provide and maintain the infrastructure and services collectively known as public works. Visit our website at apwa.net/npww for great ideas on how to celebrate National Public Works Week in your community this year. Share your experiences on social media using the hashtag #NPWW. If you have any questions about NPWW, contact Jon Dilley at jdilley@apwa.net or call 816-595-5251.

product report | by Marcia Gruver Doyle

MGruver@randallreilly.com

Doosan intros five new crawler excavators

oosan is continuing the introduction of its Tier 4 Final dash5 crawler excavator lineup, debuting five models ranging from the 14-metricton DX140LC to the 23-metric-ton DX235LCR-5 reduced tail swing machine. One area of concentration for Doosan engineers in the dash-5 upgrade was the front work group, says Shane Reardon, Doosan’s excavator product specialist. “It’s what really takes the abuse,” he says. To beef up this area, Doosan installed what it calls ultra hard wear disks in the bucket pin area that will last around 7,000 hours, Reardon says. “Just unbolt six bolts on each side to replace it,” he says. “It doesn’t

require reboring, or putting in new bushings. And the tighter things are in this area, the better your breakout force.” Doosan also put solid cast sections at the end of the stick, the end of the boom, and the pin-on point on the boom cylinder. “We also have internal gussets inside our boom at high stress points,” Reardon adds. With horsepower ranging from 113 to 181, the excavators use both a diesel oxidation catalyst and SCR emissions aftertreatment system. The DX140LC-5, DX140LCR-5 and DX180LC-5 have Perkins engines; the two larger DX225LC-5 and DX235LCR-5 models have Doosan engines. A sight gauge lets operators know the fluid level of the DEF tank; topping off the DEF tank is recom-

mended as part of regular fueling operations. DEF consumption on the machines averages around 5 percent of fuel consumption. Each new model features Doosan’s Smart Power Control, consisting of two systems – Variable Speed Control and Pump Torque Control – both designed to keep the machine productive in the Digging work mode while reducing fuel consumption. The Variable Speed Control reduces engine rpm during low workload requirements – such as the swing portion of the dig cycle – reducing the total energy needed and improving fuel efficiency up to 7 percent. The Pump Torque Control matches the hydraulic pump torque and engine response to work demands.

EquipmentWorld.com | May 2015 65

product report | continued Operator features Inside the cab, a 7-inch LCD display shows both machine operating information next to the standard rearview or optional side-view camera. When both cameras are in use, a split screen display allows them to be viewed together. “When you shut the door it’s very quiet,” says Shane Reardon with Doosan. “Some operators will start the engine, not think it’s running and try to start it again.” The machine has four work modes and four power modes – powerplus, power, standard and economy, each offering a step down in power, and leading to more fuel economy. “This helps you to tailor the machine to your application,” Reardon says. The pattern change valve – allowing you to switch between ISO and backhoe–style control patterns – is located in a service door right behind the cab. Auto shut down can be set from 3 to 60 minutes after the machine starts idling.

The DX180LC has a 129-horsepower engine and a maximum dig depth of 20 feet.

The cooling group is split instead of stacked, which Reardon says increases the visibility from the cab rearward. The hydraulic pump, drive motors and swing motors are Doosan built. The excavators come standard

with a three-year subscription to Doosan Telematics, which allows customers to monitor machine health and location, and gives Doosan dealers the ability to respond to machine warning messages and alerts.

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product report | by Marcia Gruver Doyle

MGruver@randallreilly.com

Along with the 410L, the 310SL HL has a Heavy Lift feature, which offers up to 25 percent more lift capacity than K-Series machines.

Deere intros six new L-Series backhoes, two with Heavy Lift feature that boosts lifting power by up to 40 percent

he new John Deere L-Series backhoes, ranging from the 70-horsepower Tier 4 Interim 310L EP to the 113-horsepower Tier 4 Final 410L, include two Heavy Lift models that

boost backhoe lift by up to 40 percent. (See QuickSpec chart below for an at-a-glance overview of the new models.) The 310SL HL and the 410SL models offer Deereâ&#x20AC;&#x2122;s new Heavy Lift feature. Using pressure com-

pensated load sensing (PCLS) hydraulics, a revised rear backhoe valve, improved rear structures and larger cylinders on the backhoe boom, these models can lift up to 25 percent more than their K-Series predecessors. In addition, a new

Quick specs: 310L EP

310L

310SL

310SL HL

315SL

410L

Net power

70 hp Deere PowerTech E (Tier 4 Interim)

93 hp Deere PowerTech Plus (Tier 4 Final)

99 hp Deere PowerTech Plus (Tier 4 Final)

110 hp Deere PowerTech Plus (Tier 4 Final)

99 hp Deere PowerTech Plus (Tier 4 Final)

113 hp Deere PowerTech Plus (Tier 4 Final)

Max dig depth

14 ft.

14 ft. 3 in.

14 ft. 10 in.

13 ft. 8 in.

15 ft. 10 in.

Loader breakout force

9,353 lbs.

11,045 lbs.

11,106 lbs.

10,866 lbs.

10,734 lbs.

Loader lifting capacity

3,099

6,833 lbs.

7,632 lbs.

7,489 lbs.

7,440 lbs.

7,149 lbs.

EquipmentWorld.com | May 2015 69

product report | continued Lift Mode feature gives operators the ability to get an additional 10 to 15 percent boost, making possible a total of up to 40 percent more lifting power. The Lift Mode automatically sets the engine rpms at 1,400, which gives the backhoe the capability of maximizing hydraulic pressure for the lifting operation. “Although Deere’s basic PowerCurve boom is still the same design, we strengthened the boom and enlarged the cylinders” to achieve the Heavy Lift feature, says Brian Hennings, Deere backhoe product manager. Inside the cab, the L-Series upgrades include a new seat and increased legroom to ease the seat transition between the loader and backhoe ends. The redesigned pilot control backhoe joystick towers use fingertip electrohydraulic controls. On the loader end, a new palm-on-top loader lever on the right allows you to control the clutch disconnect, quick shift, auxiliary proportional roller (for using a multipurpose bucket) and engage a momentary front wheel drive that can be used on the fly. “The clutch cut out really comes in handy when loading trucks,” Hennings says. “It lets the engine rev up as you dump the load and releases when you no longer need it.” The in-cab monitor shows machine diagnostics and controls, and allows operators to program functions such as auto idle and auto shutdown. L-Series owners can opt for John Deere’s Ultimate Uptime program, which includes the John Deere WorkSite suite of programs: JDLink machine monitoring system, machine health prognostics and remote diagnostics and programing. Other operator-centric features include lower and larger steps to get in and out of the machine, an efficient HVAC system and an

70 May 2015 | EquipmentWorld.com

elevated canopy for better visibility around the cab. Five of the six new models use Tier 4 Final Deere PowerTech Plus engines, and require diesel emission fluid. The exception is the 70-horsepower 310L EP, which remains at Tier 4 Interim. In addi-

tion, the 310SL, 310 SL HL, 315SL and 410L have a five-speed PowerShift transmission offering clutchless gear changes and speeds up to 25 miles per hour. The Autoshift option automatically selects the best gear for the load, and offers fuel efficiency gains.

Deere now offers a side shift model, using an H-frame carriage that allows the backhoe to be easily repositioned in tight quarter situations.

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Includes current specs on: • air compressors • skid steers • compact utility loaders • backhoe loaders • excavators • wheel loaders • toolcarriers • crawler dozers • scrapers • scraper haulers

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product report | continued Sideshift 315SL designed for tight spaces Deere says the 315L sideshift backhoe model reintroduces the company to this niche machine. Although sideshift models, which allow the backhoe end to be repositioned along a sliding H-frame carriage, are preferred in Europe, they’ve never gained much market share in the states, where contractors overwhelming choose center mount backhoes. Deere thinks contractors in several applications should reconsider the sideshift mount. “It gives you access to tight areas, since the H-frame allows you to work in areas that traditional center mounts can’t get into,” Brian says.

To use the sideshift feature on the 315SL, position the backhoe at a 90-degree angle left or right of the machine in the direction you want the backhoe to go, put the bucket teeth down in the ground, press a foot pedal in the center of the floor area and curl the bucket. The backhoe then slides along the horizontal carriage and locks into the new position. In addition to allowing the backhoe to reposition horizontally, letting you dig up against a wall or other obstacle, the H-frame stabilizers move vertically up and down, and thus don’t require as much space as conventional stabilizers do when extended.

Let’s Roll

The largest L Series introduction, the 15-foot 10 inch dig depth 410L also has Deere’s new Heavy Lift and Lift Mode features, which offer up to a total of 40 percent more backhoe lift capacity.

Introducing the newly designed Viper — now with highway towable running gear TM

More economical...more compact... better fuel savings...less weight than a 185 CFM tow behind

Shown with optional running gear and hose reel

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72 May 2015 | EquipmentWorld.com

• Offered in either gas or diesel, the Viper suits all your pneumatic tool needs • 80 CFM at 100 PSI rotary screw air compressor • Powerful enough to operate 90 lb. jack hammers and piercing tools • Auto engine off and restart smart technology for increased fuel savings • Auto variable throttle control based upon air demand to minimize fuel consumption and noise • Optional running gear featuring independent torsion axle suspension and heavy duty construction • Optional 50’ hose reel with 3/4” hose

Equipment reviews by owners for owners Equipment World’s Reader Reviews is your new go-to source for an in-depth unbiased look at how contractors evaluate the models they own.

Current reviews include: • Bobcat S650 skid steer • Case 580 Super N backhoe • Cat 336E L excavator

Go to EWReaderReviews.com to find out how contractors rate the machines they own.

www.EquipmentWorld.com We are proud to announce the launch of the new mobile version of EquipmentWorld.com. Stay up to date while you are on the go, with the latest construction industry news, products and insight from our award-winning editorial team.

ROAD TEST

pro pickup | by Bruce W. Smith

2015 Toyota Tundra TRD PRO CrewMax 4X4

Toyota Racing Development’s suspension and exhaust package adds attitude with performance

oyota’s Tundra has been a staple in the company’s line-up for more than a decade and it only gets better with age. Last year the Texas-built Tundra received a much-needed facelift inside and out. This year the TRD (Toyota Racing Development) model, a popular trim package among the work/ outdoor/off-road crowd for years, received an upgraded suspension and exhaust to go along with some distinctive body, badging and interior trim that’s exclusive to what is called the TRD PRO edition. Driving the 2015 Tundra TRD PRO CrewMax is an enjoyable experience: It’s the roomiest, toughest sounding, most distinctive and best

handling of all Tundras. What makes the biggest difference between the stock Tundras and the TRD PRO is the latter is equipped with some performance goodies from Toyota’s racing division, TRD. TRD’s suspension parts include remote-reservoir Bilstein shocks for added suspension control, a two-inch front lift from special TRD-tuned front coils and their softer rear leaf springs. The special springs provide a softer suspension with about two inches more travel than a standard Tundra, which helps keep the truck’s tires on the ground better in off-road driving. The TRD PRO model also gets 32-inch BFG A/Ts on 18-inch TRD wheels, a full complement of skid plates to protect the vitals and a TRD

cat-back dual exhaust system that adds both a throaty road along with an estimated 10 to 15 horsepower to the 5.7-liter iForce V8. When it comes to looks and comfort, the 2015 TRD PRO CrewMax is tough to beat. These models sport deeply embossed lettering on the bedsides, a big Toyota front grill badge, and special cloth interior trim with TRD PRO embossed on the high-back front bucket seats. Ride quality and handling, both off and on pavement are noticeably better than the typical CrewMax 4x4. Interior roominess is stellar, too. The cab is one of the largest in the market, with more head, shoulder and legroom in the front and the EquipmentWorld.com | May 2015 75

pro pickup | by Bruce W. Smith rear than any of its 1/2-ton rivals. From the performance perspective truck employs the same traction control system and strong limited-slip as its brethren that provide good traction while driving

over dicey terrain. I have driven the truck over desert terrain, in snow and over miles of muddy, rocky backroads during hunting season. It never faltered when it came to traction.

Interior is the roomiest of any half-ton. Back seat legroom is enormous and split bench helps with cargo storage. TRD model comes with cloth interior.

It’s also quite adept at towing despite the softer, longer travel suspension. I used the TRD PRO to pull a 6,700-pound 27-foot Jayco ultra-light White Hawk RV trailer that Guaranty RV in Junction City, Oregon, loaned me for the road test. Tundras have a maximum towing capacity of 5,000 pounds using a ball-and-shank in the factorysupplied receiver hitch. To tow the heavier Jayco, Toyota requires a weight-distributing hitch be used in the receiver to get proper tongue weight and to keep proper weight balance on the truck. So we quickly slid in a Reese W-D hitch and adjusted the spring bars according to Toyota’s specifications. I’ve driven the TRD PRO with and without a W-D hitch towing more than 6,500 pounds. There is a considerable difference in the truck’s handling when it has the proper setup. Taking the extra two or three minutes to hook up a W-D hitch is highly recommended when

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towing more than 5,000 pounds. Power is never a problem. The 381-plus horsepower from the TRD PRO’s 5.7-liter V8, backed with a six-speed automatic and 4.30 gears, is a fine package for any pickup. It has strong low-end acceleration and plenty of snort at any time you roll into the throttle. Fuel economy is this truck’s biggest downfall. While most of Toyota’s competitor’s full-size 5-liter V8 pickups are delivering mpg numbers in the low 20s and high teens, the Tundra I tested can barely eke out 15.6 miles per gallon on flat, open road at 65 mph, and less than 9 miles per gallon towing the Jayco in the same conditions. I saw 12.1 mpg in moderate stop-and-go city driving in my test truck. The EPA numbers are similar:

13/15/17 (city/combined/highway). spaciousness, ride, handling and Those place the Tundra at the botfour-wheel-drive performance. tom when it comes to comparable What may deter some loyal full-size pickups. Toyota buyers is the $43,900 base Toyota really needs to address MSRP the TRD PRO CrewMax fuel economy in the next generation model commands. and put a 2015 Toyota Tundra TRD PRO Specifications concerted Make/Model: 2015 Ram 1500 Tradesman Regular Cab 2WD effort in bringing the Engine: $25,195 iForce 5.7L Transmission: $32,020 into the Axle ratio: EcoDiesel ($4,000); modern era. 8 spd automatic ($500); Uconnect ($660) Fuel Exhaust: 240hp 3.0L V-6 EcoDiesel economy Suspension: 8 spd TorqueFlite automatic aside, Tires: 3.55:1 the 2015 Base Price: 20 city/23 combined/28 hwy TRD PRO Price as tested: 22 city/29.2 hwy/17 towing CrewMax Major Options: 5,000 lbs. will not disappoint Performance: in qual0-60 mph: 6.9 sec ity, interior 1/4-mile: 15.5 @ 90.6mph

Bruce’s YouTube movie review: www.youtube.com/watch?v=vnLkWn5QyOw

EPA mpg:

13/15/17

Observed mpg:

12.6/14.1/15.6

Towing mpg:

9.0 (6,700 lbs. trailer)

EquipmentWorld.com | May 2015 77

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Roadtec

www.roadtec.com

Rubbertrax, Inc.

www.rubbertrax.com

www.cushman.com/hauler4x4 57

Sany America, Inc.

www.sanyamerica.com

ditchwitch.com/safety

Schaefer Enterprises

www.sewlparts.com

79 Insert 52

Progressive Commercial Insurance

Don’t Let America Dead End

www.dontletamericadeadend.com

Shantui

www.shantui.com

Doosan Construction Equipment

www.doosanequipment.com/randy

Stellar Industries

www.stellarindustries.com

IBC

Doosan Portable Power

www.doosanportablepower.com

Terex Trucks

www.terextrucks.com

62 79

Eaton Corp.

www.roadranger.com

Tire Service Equipment Mfg. Co., Inc.

www.tsissg.com

Fab Fours

www.fabfours.com

Topcon Positioning Systems

www.topconpositioning.com

Felling Trailers

www.felling.com/eq-world

Toy Trucker & Contractor Magazine

www.toytrucker.com

81 17

Freightliner Trucks

Trail King Industries

www.trailking.com

Great American Truck Show

www.freightlinertrucks.com/Tex-Mix www.gatsonline.com

2-3 68

Trimble Loadrite

www.loadritescales.com

Hammond Air Conditioning, Ltd

www.hammondac.com

Trinity Highway Products

www.trinityhighway.com

ICUEE Expo

www.icuee.com

Vanair Manufacturing, Inc.

www.vanair.com

John Deere Construction Equipment

www.johndeere.com/backhoe BC

Volvo Trucks North America

www.volvotrucks.us.com

Kenworth Truck Co.

www.kenworth.com

Whayne Supply Co.

www.whayne.com

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80 May 2015 | EquipmentWorld.com

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EquipmentWorld.com • May 2015 12/17/14 8:54 AM

final word | by Tom Jackson TJackson@randallreilly.com

Water shortage in California the result of 40 years of neglect

alifornia’s water shortage looms large in the headlines this spring. What few are talking about, however, is that the shortage is entirely man made. While the shortage is being blamed on global warming, big developers and big agriculture, it’s really the fault of big-headed people with a small vision of the future. These dire circumstances could have been prevented had the state’s leaders in the 1970s had the wisdom and foresight of their parents. In the 1940s, ’50s and ’60s the state invested in sufficient infrastructure, roads, dams and aqueducts to spark a tremendous boom that was the envy of America and the rest of the world. But starting in the 1970s, thenGov. Jerry Brown and like-minded Democrats decided that big was bad and small was beautiful. They curtailed funding on big infrastructure projects, spent all their money on something else and here we are today. The other contributing cause of California’s water shortage is that it is not priced anywhere near it’s true value. In fact, residential water is cheaper in Southern California than it is in many places east of the Mississippi, where lakes, streams and aquifers are abundant.

82 May 2015 | EquipmentWorld.com

Again, like infrastructure, the pricing of California’s water at artificially low levels was and continues to be a political decision. The Peoples’ Republic of California may frown upon such things as market-based pricing, but it does a good job of allocating scarce resources, changing behavior and spurring alternatives and innovation.

“

Starting in the 1970s, then-Gov. Jerry Brown and like-minded Democrats decided that big was bad and small was beautiful.

”

The failure of the government of California to adequately manage its resources and infrastructure is a lot like the current debate over funding a six-year highway program for the rest of the country. Everybody knows we should raise the gas tax, but politicians don’t have the courage. When I see this decades-long, kick-the-can-down-the-road mentality it reminds me of what

a contractor in Austin, Texas told me once. After the hippies, yippies and NIMBYs successfully blocked roadbuilding in that city for 20 years, the government finally shook stiff-armed the anti-growth activists and starting building roads again. Good, except, as this contractor noted, they are never going to catch up. Austin’s traffic is horrible now and will be forever. There is a point where you get so far behind that you can’t ever catch up. Austin is now that way with traffic. And it looks quite likely that when it comes to water, California may have waited too long as well. Politicians tend to suffer from the illusion they’re so smart they can solve any problem. But farmers know if you don’t have the seed in the ground by a certain date, you won’t have a crop. Soldiers know if you storm a position without adequate firepower, everybody will die. Mechanics know if you try to tow a backhoe with a 1/4-ton truck you will smoke the transmission. Reality is a bitch to those who suffer from delusions of grandeur. And California is about to find out just how mean she is, as will the rest of the country when it wakes up in the near future to realize it doesn’t have functional interstate system anymore and no way to bring it back.

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