The inside scoop on industry news, views, and products
April 23, 2008                                                                   Vol. 4, No. 8

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Senate Agrees to Consider SAFETEA-LU Technical Corrections Bill

 The Senate voted 93-1 on April 14 to bring up H.R. 1195, making a series of corrections and changes to SAFETEA-LU. The National Stone, Sand & Gravel Association (NSSGA) has pushed for this legislation because it would restore the 80 percent-20 percent match for highways and provide $2.45 million annually for aggregates research. The lone “no” vote was from Sen. Kit Bond (R-Mo.) who continues to have problems related with some of the changes made by SAFETEA-LU to the federal regulations of household goods movers. The three Senate candidates for president did not vote.

The bi-partisan leaders of the Senate Environment and Public Works Committee, Chairman Barbara Boxer (D-Calif.) and Sen. Jim Inhofe (R-Okla.) urged passage of the motion to proceed to the bill and urged colleagues with amendments to come forward to discuss them. They explained that the bipartisan substitute amendment for H.R. 1195 has been pre-negotiated with other committees of jurisdiction and with their House counterparts. Boxer and Inhofe said that they would oppose any amendments that would cause the House to reject the bill.

 The White House issued a Statement of Position in opposing the bill, contending it would “…make substantial and harmful changes to current law.”

 Nowhere, however, does the Administration Statement of Policy mention a veto, which generally indicates the president will not veto it.  Sen. Jim DeMint (R-S.C.) may offer an amendment to delete a magnetic levitation transportation project in Las Vegas, contending it is a new earmark.

 Sen. Tom Coburn (R-Okla.) could offer an amendment calling for an investigation into an earmark for a Florida project that was changed between final passage of SAFETEA-LU and when the president signed the bill into law.  

NSSGA joined with other interested parties in a letter to the Senate urging passage of the SAFETEA-LU Technical Corrections bill. Debate of the bill is expected to continue through April 16 and NSSGA will continue efforts to push passage of this long overdue measure.

 (Source: National Stone, Sand & Gravel Washington Watch & eDigest)

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Transportation Committee Republican leaders and witnesses at an April 16 Congressional hearing blasted a proposal to dramatically expand federal regulatory authority under the Clean Water Act.

The hearing focused on H.R. 2421 — The Water Jurisdiction Grab Bill —  introduced last year by the Committee’s Chairman.

“This bill represents an unprecedented and historic federal jurisdiction grab,” said U.S. Rep. John L. Mica (R-FL), Transportation and Infrastructure Committee Republican Leader.

“Despite the claims of its proponents, this bill is far from being the simple restoration of an earlier regulatory regime. This bill could lead to the regulation of virtually every wet area in the country. I do not consider ditches, retention ponds, stormwater runoff, a puddle in a field, or a pool in a backyard to be a body of water in need of federal regulation. 

Mica predicts that as more and more Americans begin to realize “the harsh consequences of this legislation,” opposition to the bill will grow.

“With our economy in troubled waters, this legislation would put another nail in our economic coffin, creating even more uncertainty in the marketplace and driving up the cost of producing almost any U.S. product,” Mica said.

“This legislation would make it harder for our crippled housing industry to come back from its downturn because it will require more regulation, spawn more litigation, and generally increase the cost of every new home,” he continued.

U.S. Rep. John Boozman (R-AR), Water Resources and Environment Subcommittee Ranking Member, says its important to support the need to protect the nation’s water resources, and the Clean Water Act has allowed vast improvements in the United States’ water quality throughout the past decade.

However, he notes that the extent of federal jurisdiction should not be “boundless” and that state and local governments, as well as private property owners, should have a role in managing their resources. 

“The Chairman’s bill will substitute a reasoned approach to the regulation of important waters with an expansion to the fullest extent to cover activities that were never intended to be covered, perhaps even activities that take place on dry land or even in the sky,” Boozman said. “We don’t even truly know the extent of the bill’s reach. That would be determined over time by the extensive litigation that the bill would cause.  But it is hard to imagine a more expansive piece of legislation.”

Proponents of H.R. 2421 claim their intent is to simply restore federal jurisdiction, but bill opponents contend that the bill would vastly expand jurisdiction and create unnecessary confusion. 

Opponents of the bill claim the bill would do the following:

  • Expand federal jurisdiction to all waters and all activities affecting those waters, to the fullest extent under the Constitution, requiring regulation of virtually all wet areas in the country;

  • Allow federal agencies to attempt to exercise unlimited regulatory authority over all intrastate waters (waters now considered entirely under state jurisdiction), preempting state and local governments from making many local land and water-use decisions;

  • Effectively erase decades of jurisprudence and invite the courts to decide the constitutional limits of federal authority under the Clean Water Act;

  • Open a Pandora’s box of litigation and unintended consequences;

  • Impede a host of economic activities, including agriculture, transportation, infrastructure development, electric transmission, real estate activities, and mining.

Man Killed at Lime Operation after Being Hit by Pry Bar

The Mine Safety and Health Administration (MSHA) released a report on April 16 that a 36-year-old maintenance man at a lime surface non-metal mill was killed following serious injuries on Jan. 25 when the man was hit on the head by a pry bar that fell from an 80-foot-high elevated work platform.

Jeffrey S. King, the man who was injured, was wearing a hard hat at the time of the accident and was bent over shoveling. The pry bar struck him behind the hard hat. King was hospitalized and died of his injuries later that day, according to the MSHA report.

The accident occurred because management policies and work procedures failed to ensure that the work platform was maintained in a clean condition, MSHA notes in its report.

Spillage had accumulated on the work platform making the toe boards ineffective, which allowed the pry bar to be inadvertently knocked over the edge of the platform, according to MSHA. Additionally, a miner was allowed to work in an area where there was a risk of being struck by a falling object, according to the report.

The following is a synopsis issued by MSHA after its investigation:

GENERAL INFORMATION

Missouri Lime, LLC, a surface mill, owned and operated by Missouri Lime, LLC, was located in Bonne Terre, St. Francois County, Missouri. The principal operating official was Daven Anderson, plant manager. The mill operated two shifts, 24 hours a day, seven days per week. Total employment was 38 people.

Crushed rock was trucked from a local quarry to this facility, where it was stockpiled and processed in the mill. Finished products were shipped to commercial industries.

The last regular inspection at this operation was completed under prior mine ownership on Aug.16, 2007.

DESCRIPTION OF ACCIDENT

On the day of the accident, Jeffrey King, reported for work at 7 a.m., his normal starting time. He checked in at the office and met with Ricky Henderson, maintenance supervisor, who told him there was a problem with the north lime silo bucket elevator. King then met with Clifford Jarvis, maintenance man. King told Jarvis to meet him at the elevator after he finished another task.

A short time later, Henderson and King went to the bottom of the elevator and checked it but did not find any problems. They then went to the top of the bucket elevator, removed the guards from around the drive unit, and could see that the elevator chain was off the drive sprocket.

Henderson and King left the elevator to gather tools to reposition the elevator chain back onto the sprocket. About 9 a.m., Jarvis joined Henderson and King at the bottom of the elevator. Henderson and King attached their tools to a rope while Jarvis pulled them up to the work platform surrounding the top of the elevator. Henderson and King then met Jarvis at the top of the elevator.

Henderson used an acetylene torch to remove two buckets on the elevator chain to provide more access to reposition the chain. The 3-man crew then attached two ¾-ton come-a-longs to the chain in preparation for pulling it back onto the drive sprocket. The crew had two pry bars available to help them properly place the elevator chain.

The crew’s initial attempts to pull and replace the elevator chain were unsuccessful and caused some material to spill from the elevator buckets. That material fell to the bottom of the bucket elevator enclosure so King went down to the bottom of the structure. He shoveled out the material from the enclosure inspection door. While King was shoveling the spillage, Henderson and Jarvis discovered that the housing was cracked between the drive unit and the sprocket.

At 10:35 a.m., Henderson used his cell phone to call King, who was working directly below and told him about the cracked housing. As Henderson ended the call, a pry bar was inadvertently knocked off the work platform. Henderson shouted a warning to King when the pry bar fell. He and Jarvis looked over the handrail and saw King slumped over. Henderson immediately requested a call for emergency medical personnel.

Josh Green, laborer, was working about 50 feet away from the north lime silo when he heard Henderson shout. Green, Curt Nicholson, kiln supervisor, and Shawn Moore, laborer, went to King and found him non-responsive.

Emergency medical personnel arrived at 10:51 a.m. and transported King to a local hospital. He was transferred to another hospital where the attending physician pronounced him dead at 2:18 p.m. Death was attributed to blunt force trauma.

INVESTIGATION OF ACCIDENT

On the day of the accident, the Mine Safety and Health Administration (MSHA), was notified at 10:50 a.m. by a telephone call from Janice Marler, secretary, to MSHA’s emergency hotline. Fred Gatewood, assistant district manager, was notified and an investigation was started the same day. An order was issued pursuant to section 103(k) of the Mine Act to ensure the safety of miners.

MSHA’s accident investigation team traveled to the mine, made a physical inspection of the accident scene, interviewed employees, and reviewed documents and work procedures relevant to the accident. MSHA conducted the investigation with the assistance of mine management and employees.

DISCUSSION

Location of Accident

The accident occurred at the bottom of the north lime silo bucket elevator enclosure. The weather was cool and dry and was not considered to be a factor in the accident.

North Lime Silo

The north lime silo was a concrete structure used to store finished materials. The silo was 80 feet high and 24 feet in diameter. Finished material was transferred to the silo on a belt conveyor. The belt conveyor discharged the material into a vertical bucket elevator located on the outside wall of the east side of the silo. The elevator then dumped the material into the silo.

Bucket Elevator

The bucket elevator was located in an 80-foot high enclosure consisting of eight 2-foot by 6-foot by 10-foot high sections. The bottom of the elevator was 13 feet above the base of the silo and the top was 12 feet above the top of the silo. Work platforms were located at both the top and bottom of the elevator.

The elevator consisted of 10-inch by 12-inch buckets mounted on every other link of a drive chain comprised of 2-inch by 10-inch steel links. The drive chain looped around 33-inch sprockets at the top and bottom of the bucket elevator. A 5 horsepower drive motor was located at the top of the bucket elevator. The motor powered the bucket elevator indirectly by way of a speed reducer and chain.

Work Platforms

The work platform at the top of the elevator was situated around three sides of the structure in a U-shape and was accessed by a vertical ladder from the top of the silo. The platform was constructed of expanded metal sections with a diamond-shaped pattern and was provided with standard handrails, mid-rails, and toe boards along the outer edge. The platform measured 34 inches by 19 feet on the side where the crew was working.

Material spillage from the elevator had accumulated on that section of the platform and made the toe boards ineffective.

The work platform at the bottom of the bucket elevator measured 33 inches by 19 feet and provided access to an inspection door near the bottom of the bucket elevator enclosure. The platform was provided with handrails and toe boards and was usually accessed by descending a vertical ladder from the No. 2 conveyor then walking the north side of the silo. However on the day of the accident, King accessed the bottom platform by walking from the ground across accumulated material spillage then up to the platform.

Pry Bar

The pry bar that struck the victim was 38 inches long and weighed 10 pounds 4 ounces. It was 7/8 inches round on the upper end which increased to 1 1/16 inches square about a third of the way down. The final five inches were tapered on one side to form a beveled edge.

Training and Experience

Jeffrey King had one year and 42 weeks of mining experience, including 12 weeks at this operation. Ricky Henderson had nine months and one week of mining experience, all at this operation. Michael Jarvis had one week and three days of mining experience, all at this operation. All three persons had received training in accordance with 30 CFR, Part 46.

ROOT CAUSE ANALYSIS

A root-cause analysis was conducted and the following causal factor was identified:

Causal Factor: A risk analysis was not performed to identify all possible hazards and ensure that controls were in place to protect persons performing work at the silo bucket elevator. The top work platform was not cleaned up before maintenance tasks were begun. The victim was allowed to work underneath a work platform where other persons were performing maintenance tasks using hand tools.

Corrective Action: Management should establish policies, procedures, and controls to ensure tasks are safely completed. A risk assessment should be performed before performing work. Any potential hazard associated with the task should be identified and appropriate measures taken to ensure the safety of all persons. Persons performing the task should be trained regarding safe work procedures.

CONCLUSION

The accident occurred because management policies and work procedures failed to ensure that the work platform was maintained in a clean condition. Material spillage had accumulated on the work platform making the toe boards ineffective which allowed the pry bar to be inadvertently knocked over the edge of the platform. A miner was allowed to work in an area where there was a risk of being struck by a falling object.

ENFORCEMENT ACTIONS

ORDER No. 7870014 was issued on Jan. 25, 2008, under the provisions of Section 103(k) of the Mine Act.

A fatal accident occurred at this operation on Jan. 25, 2008, when a miner was shoveling at the bottom of a bucket elevator and was struck by a falling pry bar. This order is to ensure the safety of all personnel at this operation. It prohibits all activity at the bucket elevator until MSHA has determined that it is safe to resume normal operations in the area. The mine operator shall obtain prior approval from an authorized representative for all actions to recover and/or restoring operations in this area.

This order was terminated on Jan. 26, 2008, after conditions that contributed to the accident had been corrected.

CITATION No. 6240121 was issued on Feb. 15, 2008, under the provisions of Section 104(d)(1) of the Mine Act for a violation of 56.20003(b):

A fatal accident occurred at this operation on Jan. 25, 2008, when a 38-inch pry bar struck the victim on the head. The 80-foot high work platform from which the pry bar fell was not maintained in a clean condition. Material spillage had accumulated on the platform making the toe boards ineffective and allowing the pry bar to be accidentally knocked over the edge. The supervisor engaged in aggravated conduct constituting more than ordinary negligence in that he and two miners were working from the platform without first removing the spilled material. This violation is an unwarrantable failure to comply with a mandatory standard.

Everything you need to know about operations, equipment, and management can be found in Aggregates Manager. To sign up for a free subscription (for aggregates industry professionals), go to www.Aggman.com/circulation/subform.htm

Vulcan Materials Inducted into Alabama Road Builders Association Hall of Fame

Birmingham, Ala.-based Vulcan Materials Co. was inducted into the Alabama Road Builders Association Hall of Fame April 9, 2008.  Vulcan is the first company to be recognized by the Association, which previously recognized individuals only.

The Hall of Fame, established in 2002, honors, preserves, and perpetuates the outstanding accomplishments and contributions of individuals, companies and institutions that have brought and continue to bring significant recognition to the State of Alabama in the field of transportation construction.

Nominations for induction into the Alabama Road Builders Hall of Fame are made by open call to the ARBA membership. The Hall of Fame board of directors then designates those nominees who are to be inducted in a given year.

Cemex Plans Concrete Plant in East London

Building materials supplier Cemex is planning a new concrete plant off Butchers Row, Stepney in East London.

The £2.2 million project will be capable of producing 180 cubic meters of concrete an hour and will be ideally located for supplying material for the East London Line extension project and the developments associated with the 2012 Olympics.

The plant will replace the existing facility, which has been in operation since 1960s.The external appearance, including the layout and structure of the new plant, will be identical to the old facility, but internally it will be state-of-the-art with twin mixer units for maximum efficiency.

The plant has been designed to produce high volumes and satisfy the ever-increasing market requirements for higher strength concretes.

The new plant will also be complemented by the facility for out-of-hours cement and aggregates deliveries to ease congestion, and two concrete “recyclers” to reduce waste disposal and recycle surface water in the concrete mixes.

(Source: Building via ARI)

Martin Marietta Materials $300 Million Senior Notes Rated ‘BBB+’

Fitch Ratings assigned a ‘BBB+’ rating to Martin Marietta Materials Inc.’s $300 million 6.60 percent senior notes due 2018.

Proceeds will be used to reduce amounts outstanding under the company’s commercial paper program, which were recently used to fund the acquisition of five quarries and a greenfield site from Vulcan Materials Co.

Martin Marietta is the United States’ second-largest producer of aggregates — primarily crushed stone, sand, and gravel — for the construction industry.

(Source: ART/aggregateresearch.com)

National Stone, Sand & Gravel Association Accepting Applications for Barry K. Wendt Scholarship

To honor the memory of the late Barry K. Wendt, who tirelessly devoted his energy to advance the causes of the aggregates industry, the National Stone, Sand & Gravel Association (NSSGA) awards an annual scholarship to a student from an engineering school who plans to pursue a career in the aggregates industry.

To apply for the Wendt Memorial Scholarship, please go to http://www.nssga.org/careerscholarships/scholarships.cfm for instructions and click here for an application form.

Applications are open to all members and non-members. The deadline for applications is June 2. For more information, contact Catherine Whalen by e-mail at cwhalen@nssga.org or via phone at 703-525-8788.

NSSGA, Wildlife Habitat Council Announce Memorandum Of Understanding 2008 in Earth Day Observance

Recognizing the April 22 observance of Earth Day, The National Stone, Sand & Gravel Association (NSSGA) and the Wildlife Habitat Council (WHC) have signed a Memorandum of Understanding (MOU) that establishes a framework for the cooperation between NSSGA and WHC to work with industry to encourage participation in the programs of each organization and to engage and demonstrate voluntary corporate leadership in environmental performance, including enhancement, and restoration of wildlife habitat.

“This MOU solidifies our long-standing partnership with, and support for, WHC and their programs. NSSGA and our members have long supported the goal of WHC to increase biodiversity on corporate lands,” said NSSGA President and CEO Joy Wilson in a press release from NSSGA.

Specifically, the MOU allows NSSGA and WHC to do the following:

  • Engage and demonstrate voluntary corporate leadership in environmental performance including enhancement and restoration of wildlife habitat.

  • Work with industry managers to encourage their participation in the programs of each organization.

  • Facilitate and enhance community involvement in projects at corporate sites.

  • Work cooperatively to continuously strengthen the performance involvement initiatives of both organizations.

  • Work toward establishing a joint recognition program for contributions by NSSGA participating sites in the various criteria of WHC’s wildlife habitat enhancement and conservation education programs.

Robert Johnson, WHC President said in a written statement: “WHC also values our long-term partnership with NSSGA and their members. This agreement reinforces the industry’s commitment to voluntary efforts that curb the global loss of habitat and biodiversity.”

(Source: National Stone, Sand & Gravel Association)

MSHA Issuing New ID to Protect Industry from Identity Theft

The Mine Safety and Health Administration (MSHA) said it will issue a new MSHA Individual Identification Number, or MIIN, to industry personnel who apply to the agency for specific qualification, certification, and instructor credentials.

Effective April 21, individuals who apply for or need to update their MSHA credentials must first register to receive a new MIIN, a unique, eight-digit number preceded by the letter “M” that will replace the Social Security number to identify them in MSHA’s records.

“This new number will help industry personnel keep their personal information more secure and will provide increased protection from identity theft,” said Richard Stickler, acting assistant secretary of labor for mine safety and health. The agency said it will also require individuals who hold an MSHA certification for coal mine dust sampling or a certification for the maintenance and calibration of respirable dust sampling units to obtain a new MIIN in order to continue sampling.

In its announcement of the new system, MSHA said it will void any respirable dust samples submitted on or after July 1, 2008, that do not include the new MIIN on the accompanying data card. Certified personnel planning to submit any respirable dust samples to the agency on or after July 1 should register for the new MIIN as soon as possible after April 21. To register for it, visit www.msha.gov/forms/forms.asp after the effective date or call the agency at 800-579-2647

Highlights from the April 2008 Aggregates Manager print issue:

  • Should you go vertical?
  • Double your production with portable crushing
  • Track new opportunities with excavator options
  • Wheel loader care 101

 

Granite Construction to Announce First Quarter 2008 Financial Results April 30th

Granite Construction Inc. announced that it will release its first quarter 2008 financial results after the close of business on April 30, 2008. The company will host a conference call on Thursday, May 1, 2008 at 8:00 a.m. PT/11 a.m. ET.

The live conference call may be accessed by calling 877-864-2735 and 706-634-7039 for international listeners. The conference ID for the call is 41459028. A live Webcast will also be available via the Internet at http://www.graniteconstruction.com/investor-relations.

The conference call will be recorded and available for replay from approximately two hours after the live call through June 1, 2008 by calling 800-642-1687 or 706-645-9291. The conference ID for the recording is 41459028. An audio archive of the call will also be available on the company’s website.

TXI declares $.075 Quarterly Dividend

Texas Industries Inc.’s (TXI) board of directors on April 16 declared a cash dividend of $.075 per common share, which is payable May 30, 2008 to shareholders of record May 2, 2008.

TXI is the largest producer of cement in Texas and a major cement producer in California. TXI is also a major supplier of construction aggregates, ready-mix concrete, and concrete products.

GBL Acquires EUR5.47 Million Worth Of Lafarge Shares

PARIS—Belgian Financier Albert Frere’s holding company Groupe Bruxelles Lambert acquired EUR5.47 million worth of shares in French cement company Lafarge  between March 25-31, according to filings with French stock exchange authority AMF.

According to the filings, GBL acquired EUR1.09 million worth of shares on March 25, EUR1.09 million worth on March 26, EUR1.1 million on March 27, EUR1.1 million on March 28 and EUR1.1 million on March 31.

GBL said in a filing with the AMF in March that it doesn’t intend to request more than three seats on Lafarge’s board and is increasing its stake “following opportunities on the market.” The French press has previously reported that Frere could be looking to increase his stake to 25 percent.

Groupe Bruxelles Lambert is an entity linked to Lafarge board members Thierry de Rudder and Paul Desmarais Jr.

(Source: Dow Jones)

Vulcan Completes Divestitures Related to Florida Rock Acquisition

BIRMINGHAM, Ala.—Vulcan Materials Co. on April 14 completed the divestitures required pursuant to a consent decree that was a condition of the Department of Justice’s clearance for Vulcan’s acquisition of Florida Rock Industries, Inc.

The deal with Florida Rock closed on Nov.16, 2007. The divestitures were completed in a series of three independent transactions that involved both cash and the tax-deferred exchange of strategic assets.

In a transaction with Martin Marietta Materials, Inc., Vulcan sold four quarries and a greenfield site in Georgia and a quarry in Tennessee. In return, Vulcan received cash, a quarry near Sacramento, Calif., real property with proven and permitted reserves adjacent to a Vulcan quarry in San Antonio, Texas, and fee ownership of property at a Vulcan quarry in North Carolina that Vulcan had leased from Martin Marietta.

With the Luck Stone Corp., Vulcan exchanged a former Florida Rock quarry and a sales yard in Virginia for cash and Luck Stone quarries in Elkton and Augusta, Va.

In a third transaction, Vulcan sold its interests in a quarry in Georgia to The Concrete Co., which had been the joint venture partner with Florida Rock in this operation.

The cash portions of these transactions totaled $214 million subject to certain additional post-closing cash adjustments relating to inventories and escrows.

Vulcan owned two of the divested sites prior to its acquisition of Florida Rock. Accordingly, Vulcan realized an after-tax gain on the sale of these assets of approximately $0.41 per diluted share, which will be recorded in the second quarter of 2008. Vulcan previously anticipated that this gain would be realized in the first quarter.

Holcim, Lafarge Vying to By Larsen and Toubro’s Ready-Mix Concrete Business

MUMBAI, India—Leading cement manufacturers, including Holcim, AVB Group and Lafarge, are in the race to buy engineering major Larsen and Toubro’s ready-mix concrete (RMC) business, L&T Concrete. The deal could be valued at a little less than $300 million, according to sources. L&T had, in December 2007, decided to hive off its ready-mix concrete business into a separate entity called L&T Concrete.

Although L&T sold its cement business to the AVB Group in 2001, it retained the RMC unit. L&T Concrete is the market leader in the segment with a share of 25 percent. Revenue from the RMC business stands at Rs 1,000 crore. “Various companies have shown interest. We are in talks with them. I cannot comment anymore on this,” L&T director KV Rangaswami said.

L&T has been unable to manage this business as it is spread across the country through small units. “It is difficult to manage these units. Our construction business is growing and we are bidding for projects with a turnover of at least Rs 200 crore,” said an executive. L&T may retain a small stake in the RMC unit. The AVB Group’s cement firms, Grasim and UltraTech, are active in the RMC business while Holcim group company ACC also has a strong presence in this segment. Multinational cement firm Lafarge also has an RMC unit.

UltraTech joint president and deputy CFO Sanjeev Bafna said: “Both Grasim and UltraTech have a strong presence in the RMC market. Both are expanding operations. However, I cannot comment on our acquisition activities.” Grasim and UltraTech are in the process to commission their RMC units by 2008 end. While Grasim is setting up 14 units, UltraTech is building 16 in cities close to its existing manufacturing facilities in the south and west. The companies had earmarked a capex of Rs 620 crore for the venture, which is expected to diversify the product mix. An ACC spokesperson also declined to comment on the deal.

(Source: The India Times)

Sneak Preview

Sneak Preview from an upcoming Equipment Management section in Aggregates Manager. For the final article, including additional photos, watch the print editions of Aggregates Manager.

Equipment Management

Keeping Track of Tire Costs

by Tim Miller

Here’s a blueprint for lowering cost per mile.

Unless you want to pick tires for your construction trucks based on “gut feelings,” intuition, or data gathered by your peers, a good recordkeeping system to track tire performance and costs in your fleet is vital to making wise tire decisions.

And whether your records are on paper or on high-powered tire-specific spreadsheets is up to you.

A good recordkeeping system will store all the data you need to determine the actual costs associated with the tires in your fleet. The Technology and Maintenance Council’s (TMC) Recommended Practice, RP 208, serves as an excellent reference and details all the essential parameters to measure in order to accurately analyze tire-related costs. 

While most of the initial costs in a tire-tracking program are obvious — new tires, casings and retreads, and repair materials — there are other related costs that must be taken into account. These costs include the labor associated with tire management and repairs, tire replacement costs, and the cost of downtime associated with any tire issues that occur. Warranty credits for new tires and retread and repair warrantable conditions also must be documented and figured into the overall costs of tire-related expenses.

Paper versus computer tracking

There is nothing wrong with keeping paper records of when tires were installed on a vehicle, when they were removed, and associated tire costs. If you manage a handful of vehicles, paper records might work. But as the number of vehicles in a fleet increases, the complexity of keeping records “the old-fashioned way” becomes more difficult.

You should be proficient in spreadsheet analysis that will record all the data and make the calculations you need to determine the total costs and, even more importantly, the cost per mile of every tire in your fleet.

If developing a complex spreadsheet is not in your skill set, you may wish to invest in software to help your cause. There are many software packages currently on the market that can help you with this tracking.

Information-based decision making

Good tire-tracking software allows construction companies to document tire-related information (mileage and cost) and calculate cost-per-mile in several ways. Information for each vehicle should be entered, along with mileage, when new tires or retreads are installed. Down the road, costs associated with these tires also should be documented. Tread wear should be measured and entered into the program when tires are 25 percent, 50 percent, and 75 percent worn as well as when they have been removed from service.

Tire depth should be done on a regular basis. Data should be entered into the program when tires are about 25-, 50-, and 75-percent worn, as well as when they have been removed from service.

Although cost-per-mile can be calculated and shown graphically at any time by brand or tire type, it is best to wait until tires are at least 50 percent worn to draw any preliminary conclusions.  Better yet, wait until a significant number of tires are “out-of-service” before using the data to help make major purchase decisions. This gives you a more accurate picture of what’s happening with your costs.

Once tires are out of service, data gathering can continue through scrap tire analysis.  This type of data often can be captured, and summarized results can be shown with various charts and graphs. 

Knowing why tires are removed and the age and number of retreads you are getting on casings, indicates whether your tires were properly maintained. For example, if tires are full of debris and failing when punctures occur, frequent yard cleanup or tire inspections  — or both — might extend tire life in your fleet.

However, here’s a word of caution: Tire-tracking software is not intended to track every tire on every vehicle in a fleet. It is intended to be a tool to aid in the tire decision-making process by providing a way to sample performance from a selected group of vehicles within the fleet.

While tire software packages can track performance, there are other programs that can calculate and predict tires costs based on running different tire combinations. For example, a fleet maintenance manager may want to know whether to run new tires or retreads on drive axles or see how off-highway tires perform versus tires that were designed for on-/off-highway use.

A software program can calculate the costs for each scenario as well as fuel costs. Fuel economy differences among various tire combinations and varying wear rates help determine which tires will deliver the overall lowest cost of operation.

Predicting tire costs though information

Keeping good records and possessing data that predicts tire wear can help lower fleet costs. Knowing which tires are most cost effective on a fleet’s trucks can assist future tire purchase decisions.

What’s more, knowing the wear rates of tires, or how many months the tires last if in severe-duty applications, allows you to anticipate “peaks and valleys” in the replacement tire purchase cycle. This could help with budget planning in the months and years ahead.

Capturing and analyzing tire data can provide insight on what tires perform best and offer the lowest cost per mile.

You may want to evaluate comparable tire types made by different manufacturers or tire types within the same brand. 

A fleet comprised of various vehicle types, or trucks having different engines, must be considered in tire analysis. You shouldn’t evaluate one type of tire on a group of dump trucks and another type on mixers. The results will not provide a fair evaluation of the tires. When a fair comparison has been completed, you have information that can lead to making the right tire choices for your fleet.

Putting data to work

Tire performance between different company locations or terminals can be tracked in the same way as performance on different fleet vehicles. 

Tracking software allows fleets to pinpoint problem areas or establish best practices based on outstanding performance in one or more locations. Information is power, and once data are compiled, it can be used to make intelligent tire decisions.   

A well-run tire program transcends buying quality tires. Tires should be viewed as a system — tread designs and tread compounds, casing durability, maintenance practices are all important factors, and tracking them can help determine what works best. When your job is to stay profitable through low cost-per-mile and tires are one of your highest operating costs, it’s imperative to track your numbers. It’s the only way to a solid bottom line.

Tim Miller has been with Goodyear for more than 30 years. He spent eight years as a tire design engineer before taking positions as a technical representative to original equipment customers, and later, as a technical rep to several large commercial tire customers. After five years in commercial tire sales, he returned for a second stint in the commercial tire marketing department as commercial tire marketing communications manager. 

Photos courtesy of Goodyear/Veyance Technologies

e-Products

‘Right-sized’stackers

McCloskey says its new “right-size” stackers deliver higher piles of material at a lower cost. The new 65St and 80St stackers have been redesigned to match the weight of each unit to its height and load requirements. As a result, the company has reduced the cost of the units, which were initially designed to withstand the most severe demands on larger equipment. Both units feature McCloskey’s patented counterweight design, which is said to yield higher material piles, adding 50 percent or more material to each stockpile.

 

Simpler reverse-circulation hammer

Terex Halco says its new RC5 reverse-circulation hammer has an innovative “reversible” main body cylinder that can extend the effective life of the cylinder by up to 20 percent. Performance has also been increased by 20 percent, according to the company, by moving the porting air to the non-striking end and removing a constant live-air outlet path from the power chamber into the exhaust system. The hammer’s one-piece design reduces the overall length by nearly 4 inches and lowers its weight by nearly 22 pounds. It can operate on air pressures ranging from 150 to 500 psi.

Extends belt life inexpensively

Flexco says its new Flex-Lag Diamond Ceramic Lagging is an economical approach to extending belt life and increasing productivity while providing a reliable solution to belt slippage. Designed for use with medium-tension conveyor pulleys, the new product is also recommended for existing rubber lagging applications that experience high levels of wear and tear. The new product has a large ceramic tile molded into the diamond section of the lagging, providing an increased coefficient of friction. The tiles are surrounded by multiple channels for dispersement of water and renegade materials.

For more new products for the industry, check out the RollOuts section
in each month’s print edition of Aggregates Manager.
 

Manufacturer e-News

Venture Design Services, Inc. and Helicomm, Inc. have announced that the MineTracer Text-Messaging Location Transponder (TMLT) has been approved for use in underground mines by the U.S. Department of Labor’s Mine Safety and Health Administration (MSHA). With this approval, the MineTracer system addresses both the communications and tracking provisions of the MINER Act of 2006.

Mine operators required to comply with the MINER Act of 2006 now have access to two-way wireless communications and tracking capability integrated into a single system. Maintenance for operators is simplified in that only one system needs to be installed and monitored.

MineTracer provides location information for miners and assets underground during everyday operations and more importantly provides continuous communications and tracking information for days in the event of an accident when power is shut off to the mine.

With the certification by MSHA, operators can install MineTracer systems with no contingencies (pending MSHA approval) attached. The West Virginia state functionality requirements and federal safety requirements have been satisfied for every component of the MineTracer system.

Additional information about MineTracer can be found at http://www.MineTracer.com or from Service Pump and Supply of Huntington, W. Va.

(Source: Aggregate Research Industries)

Superior Industries has announced that McCourt & Sons Equipment, Inc. is its new, exclusive equipment dealer throughout Louisiana and Mississippi.

The new deal expands an existing partnership between the two companies that started in Texas in 2006. McCourt & Sons will market, service, and sell Superior’s line of conveyor equipment.

Construction software developer HCSS has received an Innovations in Employee Ownership Award, administered jointly by the National Center for Employee Ownership (NCEO) and the Beyster Institute (BI).  HCSS is one of only three organizations to receive the annual award, which recognizes creative ideas that help make employee ownership stronger and publicizes those ideas so that others may learn from them.  HCSS President Mike Rydin accepted the honor during the organizations’ 2008 Employee Ownership Conference held recently in Chicago.

John Deere Construction & Forestry has launched www.skidsteersmackdown.com, the first part of an integrated campaign for skid steer users that involves unique head-to-head contests between Deere and competitor machines.

“Skidsteersmackdown.com” is a highly interactive site that features the competitions captured on video, a discussion forum, buying information and more.

Deere engineers transformed a dirt track in North Carolina into a skid steer loader proving ground, complete with professional operators and compelling contests.

The site’s interactive components allow users to pick the Deere machines they’d like to see compared to other units. The videos – showing tasks with measurable results – can then be rated, commented on, and shared with friends and colleagues.

The new John Deere 313 and 315 radial skid steers anchor the action on the site.

e-Quick Takes

The latest people news on who’s who and who has moved where within the industry.

The chief executive Liam O’Mahoney of building materials group CRH saw his pay rise by 5 percent to almost €2.8 million in 2007.

The annual report for the company shows that the growth in O’Mahony’s pay was less than the jump in the company’s profits in 2007. CRH, which is Ireland’s biggest company by market value, made pre-tax profits of €1.9 billion last year on sales of almost €21bn.

O’Mahony, who is expected to retire as chief executive this year after eight years in the job, was paid €2.65m in 2006.

His 2007 remuneration included a basic salary of €1.34m and a performance bonus of €1m. He also received share options worth €416,000 and benefit-in-kind of €26,000.

No contribution was made to Mr O’Mahony’s pension scheme as it is fully funded to the maximum allowed under the Finance Act. Instead, the company made a cash payment of €631,570 to him.

Despite leading the country’s largest company by sales, Mr O’Mahony, 61, is not the highest paid chief executive. Bank of Ireland boss Brian Goggin earned close to €4 million in 2006/2007. David Drumm, the Anglo Irish chief executive, took home €3.2 million.

AIB, the most profitable stock exchange listed company in Ireland, paid its chief executive Eugene Sheehy €2.1 million in 2007.

O’Mahony has spent his entire career with CRH. A successor to O’Mahony has yet to be announced with Tom Hill (chief executive of CRH’s U.S. division Oldcastle Materials) tipped for the top job.

Hill was the second-highest paid director of CRH last year, picking up €1.67 million, which was down €151,000.

Myles Lee, the company’s finance director, was paid €1.46 million, an increase of €54,000.

Declan Doyle, who retired as head of CRH’s European building material’s division last year, was paid €736,000. CRH chairman Kieran McGowan was paid €315,000.

(Source: www.examiner.ie, by Ian Guider)

The members of the National Ready Mixed Concrete Association have elected Frank Craddock of CEMEX in Houston as chairman of the Association’s Board of Directors. He was elected during last month’s Annual Convention in Las Vegas along with Henry Batten, Concrete Supply Co., Charlotte, N.C., as vice chairman and Tim Becken, Cemstone Products Co., Mendota Heights, MN, as secretary/treasurer for the 2008/2009 term. Craddock succeeds Elizabeth Twohy of Capital Concrete, Norfolk, Va.

Craddock, executive vice president of CEMEX, has more than 28 years of experience in the ready mixed concrete, cement and aggregate industries, most of them with CEMEX and its predecessor, Southdown. He has served on the NRMCA Board and Executive Committee for many years. Craddock holds a bachelor’s degree from Auburn University and an MBA from the University of Central Florida.

Batten has been with Concrete Supply Co. since 1998 in various capacities, including chief financial officer, vice president of finance and executive vice president. He participates in the Carolinas Ready Mixed Concrete Association through committee work and is a member of the Construction Financial Managers Association. Batten earned a bachelor’s degree in accountancy from Arizona State University and an MBA from the University of Alabama. He has served on NRMCA’s Operations, Environmental & Safety, Construction Industry Alliance and Business Administration committees. Batten has also previously served on the NRMCA Board and Executive Committee.

Becken has been with Cemstone Products since 1991. He served as president of Aggregate & Ready Mix Association of Minnesota in 1996. Becken earned a bachelor’s degree from St. Olaf College, graduating cum laude. He has served on numerous NRMCA standing committees, including the Educational Activities, Government Affairs, Strategic Planning and Operations, Environmental & Safety. Like his fellow officers, Becken has also previously served on the NRMCA Board and Executive Committee.

In addition to its new slate of officers, NRMCA members also elected the following to serve on the Board of Directors for three-year terms ending in 2011:

  • Carmine Attanasio, New York City Concrete Promotion Council, Bronx, NY
  • Diggs Bishop, Cardinal-Virginia Concrete Co., Springfield, VA (representing Mid-Atlantic Region)
  • Dave Bull, Morse Bros. Tangent, OR (representing Northwest Region)
  • John Ferraiolo, Ferraiolo Construction Corp., Rockland, ME (representing Eastern Region)
  • Sherry Griswold, Griswold Ready Mix Concrete, Inc., Jacksonville, FL (representing Southeastern Region)
  • Allen Hamblen, Glacier Northwest, Inc., Seattle
  • John Holiman, Concrete Company of Springfield, Springfield, MO
  • Norm Jagger, Aggregate Industries, Eagan, MN
  • Adam Manatt, Manatt’s Inc., Brooklyn, IA (representing North Central Region)
  • E.J. “Manny” Nappa, iMix, Glendale, AZ (representing Southwest Region)
  • Eric Nicholson, Centre Concrete Co., State College, PA
  • Mark Stiles, Trinity Industries, Inc., Dallas
  • Mike Turner, Ash Grove KC Ready Mix Group, Overland Park, KS (representing South Central Region)
  • Bill Wagner, Lafarge Building Materials, Inc., Alpharetta, GA
  • William Doug Walker, Walker Concrete Company, Stockbridge, GA

NRMCA’s Board of Directors also elected the following to fill vacant unexpired board seats:

  • Jamie Rogers, Texas Industries, Dallas
  • Rodney Grogan, MMC Materials, Madison, MS
  • Eugene Ceccotti, Shamrock Materials, Petaluma, CA
  • Scott Bigler, Altaview Concrete, Sandy, UT
  • Scott Parson, Staker Parson Companies, Ogden, UT
  • Jim Purcell, Lehigh Cement Company, Allentown, PA
  • Niel Poulsen, Aggregate Industries West Central Region, Golden, CO
  • Gene Wagner, Bestway Concrete, Milliken, CO
  • Pat Heale, Ocean Construction Supplies LTD, Vancouver, BC

Dwight Kimelton signed on as branch manager of the Godwin Pumps Tampa Branch. Kimelton joins Godwin with over 13 years of experience in industrial paint sales and marketing management and another eight years in equipment rental and sales. 

A member of the National Association of Corrosion Engineers (NACE) and Steel Structures Painting Council (SSPC), Kimelton received a degree in Industrial Technology from Rend Lake College (IL).

Steve Tao joined the Godwin Pumps Mira Loma Branch as its assistant branch manager. Tao has more than 12 years’ experience in the equipment rental industry, with particular focus on customer service and corporate and independent store account management. 

In addition, Tao provided four years of distinguished service to the United States Marine Corps, where he received a host of awards, including a Marine Corps Good Conduct Medal. Tao earned a bachelor of science, a bachelor of arts degree in accounting, and an associate’s degree in computer information systems from DeVry Institute.

Lafarge SA has appointed Pascal Casanova as the group’s director of Research and Development.

Casanova replaces Denis Maitre, who has been appointed as managing director of Lafarge’s Aggregates & Concrete business in France.

Casanova, 40, is a graduate of the Ecole Polytechnique and Ecole Nationale des Ponts et Chaussees.  He started his career with a public works company specialized in civil engineering, where he was in charge of supervising French bridge projects.

He joined Lafarge in 1999 as technical director. In 2002, he was appointed as head of R&D for Lafarge’s roofing business, managing several technological breakthrough projects and from 2005, he was managing director of Lafarge roofing components.

Pascal Casanova will be based at the Lafarge Research Center in L’Isle d’Abeau, near Lyons, which is the world’s leading building materials research facility, with more than 200 researchers of different nationalities.

He will be in charge of pursuing the implementation of Lafarge’s innovation strategy, identified by Chairman and Chief Executive Officer Bruno Lafont as a priority for the Group’s development. In particular, he will be responsible for generating solutions for sustainable construction.

(Source: ARI/aggregateresearch.com)

Courtney Barrett joined McLanahan Corporation on March 10, 2008 and brings with him 15 years of experience in working with South American customers. Courtney will be responsible for managing both the Aggregate and Mineral product lines of McLanahan Corporation in South America. 

Johnny Escribano joined McLanahan Corporation on April 1, 2008 as a Regional Sales Manager and will be responsible for managing projects and customer needs in the Mexican, Central American, Puerto Rican markets. He will also be responsible for the markets in Florida and the Caribbean. Escribano brings with him nearly 30 years of experience in the aggregates industry.

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Compiled by Tina Grady Barbaccia, Aggregates Manager Senior Editor.
To contact Tina about the newsletter content, send e-mail to e-news@aggman.com or call (630) 364-2306.

Interested in being a sponsor of our newsletter?  Contact your sales representative for more information.  Click here for list of contacts.
 

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