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uc_1.indd 1 10/9/2009 9:55:22 AM uc_2.indd 2 10/9/2009 9:56:50 AM uc_3.indd 3 10/9/2009 9:57:41 AM OCTOBER 2009 CONTENTS October 2009 | www.utilitycontractoronline.com Mobile Metal Gear 18 By Jason Morgan Battling through the troubled truck market. 18 14 22 14 Predicting Your Business Future DEPARTMENTS By Brad Dawson 8 Groundbreaking News The fi ve stages of strategic business planning. 40 Calendar 41 The Pipeline 22 Utility Contractor’s Salute to the Minnesota Utility 42 Advertisers’ Index Contractors Association By Jason Morgan We tip our hats to one of the hardest working NUCA chapters in NUCA. DEPARTMENTS 6 President’s Message Track It Out 28 Utility Construction EXPO ‘10 26 By Jason Morgan Mighty tracked trenchers tackle utility installations. 34 Inside Washington 36 Safety Management 38 NUCA News 4 Utility Contractor | October 2009 uc_4.indd 4 10/9/2009 9:58:59 AM uc_5.indd 5 10/9/2009 10:00:05 AM BENJAMIN MEDIA Publishing Team NUCA PRESIDENT’S MESSAGE Publisher Bernard P. Krzys — [email protected] Associate Publisher Robert D. Krzys — [email protected] Editor James W. Rush — [email protected] Managing Editor Show Up and Speak Up! Keith Gribbins — [email protected] Associate Editor Jason Morgan — [email protected] eize the day,” wrote Roman lyric poet Horace. It Contributing Editors was good advice some 2,000 years ago and it’s good Sharon M. Bueno — [email protected] Bradley Kramer — [email protected] “ advice now. It’s advice I long ago decided to take with Pam Stask — [email protected] regard to expressing my views to my representatives Creative Director S W.M. Conley — [email protected] in Washington. As a utility contractor I have a unique perspective Graphic Designer on the abysmal state of our nation’s underground infrastructure — Elizabeth C. Stull — [email protected] literally the view from the trenches — and as a small businessman, Marketing Manager Pete McNeil — [email protected] I know what it takes to keep a company afl oat in today’s economy. Regional Sales Representative To make informed decisions on my behalf, these lawmakers Ryan Sneltzer — [email protected] Circulation Manager need to hear what I have to say and at every opportunity that Alexis R. Tarbet — [email protected] presents itself. As President of NUCA, I’ve had the privilege of speaking before several congressional com- NUCA mittees on infrastructure and small business issues. As a NUCA member, I’ve visited my Offi cers state’s representatives in their Capitol Hill offi ces during the association’s annual Washington President Lyle Schellenberg — Salem, Ore. Summit. Is all that enough? Not in my opinion. There are a multitude of opportunities worth President-Elect seizing in my own backyard. It’s just a matter of translating concern, and in some cases anger, Dan East — Albuquerque, N.M. into effective political action. Let me give you an example. Senior Vice President Ryan Schmitt — Jacksonville, Fla. Recently, I read that my congressman, Kurt Schrader (D-Ore.), was holding a few Treasurer public meetings in the district. One was going to be held in the food court of a local Alex Paris — Atlasburg, Penn. shopping mall on the upcoming Saturday — an ideal opportunity to get a little more Secretary James Barron — Joppa, Md. face time with him. We had met previously in his Washington office during the Summit, and when I testified before the Small Business Committee, he had, at my request, intro- NUCA Vice Presidents duced me. I arrived at the mall and discovered that I needed to fill out a sheet of paper Bill Bocchino Chad Reed outlining my issues. When the congressman walked into the mall, he immediately rec- Jacksonville, Fla. Dover, Del. ognized me and I was able to use that opportunity to thank him for the congressional Virginia DiCristofaro Dave Rice Warwick, R.I. Henderson, Nev. introduction. By talking to his staff, I was able to have my paper moved to the last slot, Chuck Dimick Mark Scoccolo which I hoped might give me more than the three minutes allowed each constituent. Las Vegas, Nev. Pacifi c, Wash. Glenn Ely Mike Smith Since everyone else was talking about health care, I purposely avoided that topic and Newtown, Pa. Albuquerque, N.M. Alan Gravel Keith Steen concentrated on making a case for sewer and water infrastructure funding and, using Powder Springs, Ga. West Point, Ga. my own company as an example, explained why changing the current laws governing Florentino Gregorio Bruce Wendorf Washington, D.C. Punta Gorda, Fla. the process of unionization was a case of fixing something that wasn’t broken. Ricky Harp Andy Wolf I understand that due to economic restraints, it is diffi cult for most people to travel to Fayetteville, Ga. Davenport, Iowa John Letourneau Kirk Woodward Washington, D.C., to talk to his/her congressman or senator, but it is possible to personally Duluth, Minn. Phoenix, Ariz. interact with these folks if one stays vigilant for opportunities at home and then acts on Ron Nunes West Warwick, R.I. those opportunities. We can and do make a difference when we show up and speak up. NUCA Staff Chief Executive Offi cer Regards, Bill Hillman — [email protected] Chief Operating Offi cer Linda Holtz — [email protected] Director of Communications Susan Williams — [email protected] October 2009 Volume 33, Number 10 Utility Contractor (ISSN 1098-0342) is published monthly for the National Lyle Schellenberg Utility Contractors Association by Benjamin Media Inc., 1770 Main Street, PO Box 190, Peninsula, OH 44264. Periodicals postage paid at Peninsula, OH and additional offi ce. Subscription price: $1.50 per issue, $15 per year. Foreign subscriptions: $3 additional per year. Subscription rate for members is $15, which is included in the dues. ©2009 NUCA. All rights reserved by the National Utility Contractors Association for articles contained herein except where otherwise noted. No part of this publication may be reproduced or transmitted by any means without written permission from the publisher. Printed in the U.S.A. POSTMASTER: Send address changes to: Benjamin Media P.O. Box 190 Peninsula, OH 44264-0190 USA. Canadian Subscriptions: Canada Post Agreement Number 6 Utility Contractor | October 2009 40040393. Send change of address information and blocks of undeliverable copies to Canada Express; 7686 Kimble Street, Units 21 & 22, Mississauga, ON L5S 1E9 Canada uc_6.indd 6 10/9/2009 10:00:52 AM uc_7.indd 7 10/9/2009 10:01:31 AM GROUNDBREAKING NEWS Construction Equipment Exports Dip government has been us- ing various economic stimulus measures to jump-start the economy. The economic stimulus package has fallen short for construction ma- chinery manufacturers. But, free trade increases exports and stimulates the economy. It helps keep American manufacturers in business, providing American jobs and eco- nomic resources to com- munities, states and the nation.” AEM urges Congress to pass the free-trade agreements already completed and to leave NAFTA alone, Cervero noted. “Other nations These are strange economic times. If the economic fallout has are joining in free trade agreements with each other, and we showed us anything, it’s that we are a global economy — when are being left behind,” he said. there’s a drastic change in one nation’s economy, it affects the “We also need to get our roads and bridges and other infra- others. U.S. construction machinery exports dropped 36 per- structure in good condition so we can move goods to market cent during the fi rst half of 2009, with $6.4 billion shipped to more effi ciently. China and many other nations realize the con- global markets compared to $10.1 billion at mid-year 2008, ac- nection and are spending much more on infrastructure than we cording to the Association of Equipment Manufacturers (AEM). are — China’s 9 percent of GDP, for example, compared to 0.93 All world regions recorded double-digit declines in construc- percent for the United States. We need to be sure U.S. manu- tion equipment exports for the fi rst half of 2009, led by Europe facturers have access to business around the world, as other and Canada. nations ramp up their infrastructure funding to better compete on a global scale,” Cervero added. • Exports declined 53 percent to Europe for a total $777 The top 10 countries buying the most U.S.-made construc- million and dropped 45 percent to Canada for a total tion machinery during the fi rst half of 2009 were: (1) Canada $1.8 billion. — $1.8 billion, down 45 percent; (2) Mexico — $510 million, • Exports to Asia decreased 30 percent to $939 million. down 6 percent; (3) Australia — $473 million, down 43 per- • Exports to Central America dropped 21 percent to $662 cent; (4) Chile — $425 million, up 5 percent; (5) South Africa million, with a lesser decline to South America — minus — $231 million, down 38 percent; (6) Belgium — $222 million, 14 percent for a total $1.2 billion. down 39 percent; (7) Brazil — $216 million, down 16 percent; • Australia/Oceania’s export purchases decreased 42 (8) China — $210 million, down 6 percent; (9) Peru — $177 percent to $497 million, while Africa took delivery million, up 1 percent; and (10) Colombia — $168 million, up of $528 million worth of construction equipment, a 27 percent. 24-percent drop. India came in at No. 16 with $76 million worth of construc- tion equipment purchases, a 33-percent gain compared to mid- “U.S. exports of construction equipment began to erode in year 2008. No.18 was Russia at $67 million, a drastic decline of third quarter 2008 with the worsening global recession.