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Congressman Visits Terex
150 Years of Gehl
Fourth Quarter Nonresidential Construction Index
Remaning the Military
Caring Means Tracking
CityScape
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Congressman Visits Terex
Highlights Impact of Economy on Industry
 Congressman Jim Oberstar (D-Minn.), Chairman of the House Transportation and Infrastructure Committee, is no stranger to the pages of Utility Contractor thanks to his support of NUCA. But in November, Oberstar paid a visit to Terex’s compact equipment manufacturing facility in Grand Rapids, Minn., for a facility tour and discussions.
“The economic downturn has had a significant impact on our business,” said Lisa Walsh, General Manager of the Terex Construction Americas facility. “We are positioning ourselves to keep and grow jobs here in Grand Rapids with lean manufacturing practices, but we can’t do that unless there is a market recovery. We greatly appreciate Congressman Oberstar’s leadership on transportation infrastructure investment and are extremely pleased he came to meet with us and see our facilities.”
The visit was the result of an invitation from Terex.
It provided both an opportunity for the Congressman to learn more about construction equipment made in his
district and for Terex to thank him for his leadership in seeking reauthorization of surface transportation programs legislation known in Washington as SAFETEA-LU and most often in the construction industry simply as “the Highway Bill.” At press time, the legislation will expire Dec. 18 without further Congressional action.
“Chairman Oberstar knows that the Highway Bill is vital to employment in the construction equipment industry and for construction contractors nationwide and we thank him for his leadership,” Walsh added.
The construction industry, which includes manufacturing, distribution and equipment service, has been hard hit by the recession — as much as 8 percent of all job loss during the recession, according to an IHS Global Insight study. The Associated Equipment Distributors (AED) and Association of Equipment Manufacturers (AEM) say uncertainty surrounding new federal transportation program funding, coming on top of the most severe downturn seen since the end of World War II, seriously endangers the long-term health of the industry.
150 Years of Gehl
Chromed-out a Loader to Celebrate
 A sesquicentennial anniversary is no small event. To mark the occasion, Gehl Co., manufacturer of compact construction equipment, headquartered in West Bend, Wisc., chromed-out a 10,000-lb 7810E skid steer.
“We were looking for a unique way to celebrate our 150th anniversary,” said Dan Keyes, VP of Sales and Marketing. “What better way to commemorate this milestone than with the most unique machine in our product lineup, all decked-out. There is truly nothing like this machine.”
The original concept for the machine was created by Form-I Design based in Waverly, Iowa. The design features a highly reflective gold and black finish and includes laser-cut Gehl logos in the ROPS side screens. Large decals on the lift arm display historical milestones of Gehl Co. Milsco, a long-time Gehl supplier based in Milwaukee, contributed a customized seat for the project. Covered in leather, the seat is decorated with silver piping and an embroidered Gehl 150th anniversary logo.
The most challenging aspect of the design was the chrome-like reflective surface of the machine. To achieve this dynamic finish, Gehl Co. contracted with XXX Chrome Plating in Brookfield, Wisc. The machine’s exterior received chrome plating treatments in gold, black and mercury, using a highly specialized chroming process.
The interior cab components were sanded and chrome plated, and the headliner received a leather treatment to match the seat. Custom-made 3-D chrome plates with a laser-cut Gehl 150th anniversary logo adorn the sides of the bucket, the front of each lift arm and the steel mesh on the rear engine cover.
The Gehl Co. history began in 1859 in a blacksmith shop located at the westerly bend of the Milwaukee River in a small farming community. Since then, Gehl Co. has been led by three generations of Gehl family members and still operates in the same Midwestern town where it began 150 years ago.
To commemorate their 150-year milestone, Gehl Co. has published an illustrated hard cover book that details the events of the company’s evolution. Copies can be ordered on the Gehl Web site www.gehl.com on the “Gehl Gear” page.
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Fourth Quarter Nonresidential
Construction Index
Strategic Planning During Uncertain Times
Our fine friends at FMI — a provider of management
consulting and investment banking to the construction industry — have some positive news this month. Despite market uncertainties, 62 percent of contractors are still focused on long-range strategies, according to the Nonresidential Construction Index (NRCI).
This quarter, the NRCI was 47.7, a positive move from the third quarter 2009 reading of 44.8. The index is derived from a FMI survey to NRCI panelists who are construction firm executives in nonresidential building markets. Since the inauguration of the NRCI in the autumn of 2007, panelists have been optimistic about markets coming back strong three years out. That optimism has dimmed since the second quarter, as nonresidential contractors realized the American Recovery and Reinvestment Act (ARRA) would not add much to their backlogs. At this time, for commercial and lodging markets, panelists believe it will take all of three years to make a comeback.
One market that has remained relatively strong throughout the downturn is the miscellaneous mix of utility, infrastructure and sundry niche markets. Some contractors serve these markets on a regular basis, and others are beginning to seek them out because it appears that associated projects either have secure funding or are so necessary to the community that they must be built — recession or no recession, according to the report.
FMI took a break from questions about financing and the effects of Stimulus funding to examine the NRCI’s panelists’ approach to strategic planning in the face of unprecedented uncertainty in the markets. FMI found that 62 percent of panelists still value long-range planning, and some credit those strategies for helping them prepare to thrive in the current downturn. For about 38 percent of panelists, looking beyond the next year was a stretch as they scramble to shore up declining backlogs and do what they can to keep their company in business until the markets make a comeback.
Other NRCI fourth quarter highlights:
Overall Economy: Panelists are seeing significant improvement in the overall economy with the index for this
category moving from 43.5 last quarter into positive growth territory at 52.1.
Delays and Cancellations: Delays and cancellations have remained stable since the first quarter of 2009, but this is not a good sign, as delays continue to affect 20 percent of projects and cancellations are running at 10 percent — more than three times what used to be considered normal.
Cost of Materials: The cost of construction materials is up slightly. Therefore, the index gauging the effect on contractors is down slightly from 63.8 to 59.4. Statistically, this is an improvement from a material supplier’s point of view, but it is a sign that either supply has decreased or demand has increased slightly.
Cost of Labor: The cost of labor is slightly lower than last month and appears to be stable from quarter to quarter at this time with the current component index at 53.1.
Productivity: The productivity component index is slightly lower this quarter, moving from 62.4 to 61. This may be a sign that contractors are reaching the maximum efficiency that can be attained by working harder with fewer people.
Remaning the Military
A Milestone in Wheel Loader Remanufacturings
 Wheel loaders are cool in and of themselves, but a badass wheel loader manufactured for combative jobsites is even cooler. Case Construction Equipment has completed remanufacturing of its 500th MW24C wheel loader under contract with U.S. Army Tank, Automotive and Armaments Command (TACOM) and the Army National Guard.
During the past six years, Case has been called on to remanufacture 250 wheel loaders for the National Guard and reset another 250 units for TACOM.
“Completing work on our 500th machine marks an important milestone in our partnership with the U.S. military,” said Chris Rolsen, Case Remanufacturing Center General Manager. “This six-year program has proven successful for the Army, the National Guard, the local community and Case. Knowing that we are putting this equipment back to mission-capable standards means we are directly supporting America’s troops worldwide. This is a great source of pride for our employees at Fort McCoy.”
The wheel loader does not feature mounted turret guns or missile launcher. Instead, the remanufacturing includes complete machine disassembly, inspection, refurbishment, reassembly and thorough testing.
Reset units receive a full inspection and the repair or replacement of worn parts, resulting in full restoration to Army performance standards. These refurbishing processes can extend the machines’ life spans by as much as 15 years.
Case remanufactures and resets equipment for the military at the Case Remanufacturing Center, located at Fort McCoy in western Wisconsin. The company also employs a local workforce, including many current or retired Army National Guard and Reserve members.
In addition to the wheel loader agreements, Case refurbishes M4K rough-terrain forklifts under contract to TACOM at the Remanufacturing Center, and to date has overhauled 280 units. The Remanufacturing Center also provides parts and technical support to reset operations in Iraq and Afghanistan.
Caring Means Tracking
A Volvo Telematics System Standard on all Larger Machines
 When you’re pinching every penny, it’s good to know where all your equipment is and what it’s doing. That’s why Volvo is going to equip all general purpose machines with a CareTrack telematics system as standard gear. Under the plan, all newly produced larger machines (wheel loaders over 10 tons, articulated haulers, excavators over 12 tons, motor graders) ordered for markets with CareTrack availability, will be standard equipped with telematics and will be delivered with a no charge, three-year CareTrack customer subscription that enables owners to enlist the full range of benefits available with remote monitoring.
“Volvo Construction Equipment feels that remote machine monitoring is a feature with high business value for the customer and we want to accelerate its adoption throughout our various market segments,” said Tomas Kuta, President of Customer Support for Volvo Construction Equipment.
“Every segment we participate in is being driven toward increasingly sophisticated business approaches by the combined influences of environmental and safety concerns, globalized economies and ever more demanding end customers. Higher adoption levels of telematics and the services that can be delivered using the technology will enable our dealers to more effectively tailor and deliver solutions for our customers.”
CareTrack is Volvo Construction Equipment’s telematics system used to manage a machine’s productivity and maximize its availability for work.
Using GPRS (mobile network) or satellite technology to send information, data is available securely and instantaneously to any remote online connection.
Through fault reporting and activity warnings and by facilitating remote diagnosis, the goal is that machine problems will be identified sooner and resolved faster. Machine operation and deployment can be optimized via functions that monitor fuel consumption, location, hours of operation, speed and approaching service intervals.
“Telematics have come a good distance in a fairly short time,” said Kuta. “This move is a statement to our customers that telematics are becoming a ‘must have’ for ongoing competitiveness in their business — and we are committed to their success.”
CareTrack is available on the following machine models:
- Wheel Loaders L60F – L350F, excluding L180HL
- Articulated Haulers A25E – A40E
- Wheeled Excavators EW160C – EW230C
- Crawler Excavators EC140CL – EC700CL
- Motor Graders G930 – G990
- Tracked Forestry Carrier FC2421C
- Standard Demolition EC210CLD – EC700CLD
- High Reach Demolition EC360C-HR and EC700B-HR
- Pipelayers PL4608 and PL4611
CityScape
Phoenix’s Largest Private
Development Project Completed
 At $900 million, 28 stories, 2.5 million sq ft and covering three lineal blocks, CityScape, an ultra-modern, multi-use facility, is being constructed right in the middle of downtown Phoenix, with about as much ease as inserting a large boat into a small
bottle. And like many projects this year, it faced challenges and delays.
Expansion of the underground facility involved the relocating of an expansive network of existing underground utilities that supported the busy downtown area and included electric, gas, sewer and communications. Like any metropolitan city, tearing up roads, disrupting traffic and construction noise were all major issues. In addition, relocating the utilities required construction under the new light rail tracks, also a major concern.
Four months prior to construction, the construction manager called on Arvid Veidmark of Specialized Services Co. (SSC) to consult on the complex utility issues. For Veidmark and his team, space was the biggest issue. They needed room to maneuver their equipment.
Two boring events were planned. The first was a 60-ft bore to install 54 in. of steel casing under the new light rail system at Washington and Central Avenues. The original design called for two horizontal auger bores to install 50 conduits (40 4-in. and 10 5-in. conduits) but after careful investigation and planning, Veidmark suggested one 54-in. hand tunnel.
“Given the size of the area we had to work in, 24 ft by 60 ft for the pit, shoring, crane and other equipment, a hand tunnel was the only option,” said Veidmark. “This was a very unusual situation.
We didn’t have the space for normal separation of utilities so we bundled them in the smallest casing we could.”
According to Veidmark it took his team about five weeks to complete the bore.
The second bore, under the busy intersection at 1st St. and Washington, called for installation of 75 ft of 30-in. steel casing for APS electrical conduits.
Pipe ramming was selected because it could be performed in a shallow, narrow pit and although it would cause some noise and traffic issues, it could be completed in the quickest amount of time and cause the least amount of disruption.
“Just as the first complaint came in about the noise the bore was finished — about eight hours total ramming time.” Veidmark commented. This was the smallest pit SSC had ever worked in for a pipe ramming application (33 ft by 12 ft by 16 ft).
Although this was an atypical project, it was not the utility relocating that caused the setbacks, but the attention paid to its importance in the design phase. Veidmark said there’s a very good reason why most Federal Agencies now mandate the use of Subsurface Utility Engineering. “This project was like a puzzle,” Veidmark said. “The various phases were out of sequence because the unexpected conflicts caused delays while the team waited for re-design and approvals.”
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