While some rental operations expect this growth to come from increased demand as the construction industry recovers, ARA says the benefits of renting have been magnified in today’s marketplace, resulting in more rental customers. Many construction equipment companies, including United Rentals, say they are seeing a “secular shift” in North America as customers recognize the benefits of rental.  More than 96 percent of those surveyed said they expected annual rental revenues this year to at least equal 2011, with 85 percent expecting an increase and more than 37 percent expecting double-digit revenue growth this year.

“After years of inaction, we are glad to see that both houses of Congress are now making progress on surface transportation reauthorization. It is critical that lawmakers build on the momentum and work together in a bipartisan manner to complete a new multi-year highway bill that restores certainty to federal infrastructure programs and lays a solid foundation for America’s future economic growth.”

“President Obama made clear in his speech that our mission is to build an economy where we reward hard work and responsibility,” said LaHood in a written statement. “Investments in transportation projects like the I-4 Corridor mean job creation and economic growth. We have critical transportation work that needs to be done and Americans who are ready to get to work.”

LaHood’s visit follows President Obama’s State of the Union address, in which he called for using funds saved from winding down the wars in Iraq and Afghanistan to pay down the debt and on a transportation bill that would clear the way for nation building here in the United States.

The I-4/Lee Roy Selmon Expressway Connector, or “Crosstown Connector,” is a new, elevated roadway that will connect Interstate 4 with the Lee Roy Selmon Expressway and link two major east-west corridors. This new roadway will significantly improve the movement of people and goods through the Tampa area by reducing congestion.

The project, which is using $105 million in American Recovery and Reinvestment Act funds, will provide a truck-only direct access route to the Port of Tampa. The port generates $7.8 billion annually in economic benefits and 96,000 jobs in West and Central Florida, according to the state. The truck-only route also removes truck traffic from downtown Ybor City. In addition, the Crosstown Connector provides an evacuation route for area residents as well as an alternative route for commuters traveling into downtown Tam

The for-hire trucking industry added 5,300 jobs on a seasonally adjusted basis in January, while payroll employment in the entire U.S. economy surged by 243,000 civilian nonfarm jobs, according to preliminary numbers released Friday, Feb. 3, by the Bureau of Labor Statistics (BLS). The U.S. unemployment rate dropped to 8.3 percent.

Payroll employment in for-hire trucking is up by 51,500, or 4 percent, from January 2011. Employment is up by 89,100, or 7.2 percent, from the bottom in March 2010, but it remains 130,100, or 9 percent, from the peak in January 2007.

The latest report from BLS includes the annual benchmark revision in the size of the U.S. work force, adding 162,000 jobs to the number estimated in March 2011. For for-hire trucking, this meant that the revised BLS figure for payroll employment in December was 1.318 million jobs — 22,000 more than what BLS initially reported for December. The January figure is about 1.323 million.

The BLS numbers for trucking reflect all payroll employment in for-hire trucking, but they don’t include trucking-related jobs in other industries, such as a truck driver for a private fleet. Nor do the numbers reflect the total amount of hiring since they only include new jobs, not replacements for existing positions.

Commercial Carrier Journal (CCJ) is a sister publication to Aggregates Manager, Better Roads and Equipment World magazines.

The current nation is currently operating under an extension of Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), the surface transportation bill enacted by George W. Bush on Aug. 10, 2005. The bill originally expired on Sept. 30, 2009, has undergone a series of extensions since then. The latest extension is set to expire on March 31, 2012.

On Feb. 1, the T&I Committee began consideration of the American Energy & Infrastructure Jobs Act, a bill introduced in the House by Transportation Committee Chairman John L. Mica (R-Fla.) and Highways and Transit Subcommittee Chairman John J. Duncan Jr. (R-Tenn.). The legislation was approved early this morning.

“No other bill this Congress will create jobs, lower energy costs or improve our deteriorating infrastructure as effectively as this legislation,” Mica said in a written press statement. “With millions out of work, particularly in the construction industry, Americans deserve a long-term transportation, energy and jobs bill from Congress.

“The American Energy & Infrastructure Jobs Act will be the most significant reform of transportation programs in decades,” Mica continued in the written statement. “This bill will cut red tape, reduce the federal bureaucracy, move major infrastructure projects forward, attract more private sector participation, and give states the flexibility they need to address their most critical transportation needs.

A year ago, the Committee began holding bipartisan hearings and meetings around the country to gather input from state and local officials for a bill to reform and improve federal transportation programs, Mica said.

“Since then, we have worked to incorporate as many ideas from our Republican and Democratic colleagues as possible,” he said. “With today’s extensive and open debate, we have adopted many amendments, including 21 Democratic amendments, and we will continue to work with our colleagues as this bill moves forward.”

He likens this step forward to the progress that has been made on a long-term Federal Aviation Aviation (FAA) bill. “Some thought our committee would never complete a long-term FAA bill, but we have reached a bipartisan bicameral agreement on that critical measure,” Mica noted. “The President also recently signed a bipartisan pipeline safety bill that we sent him. We can also find common ground on this essential legislation to move our country and economy forward.”

Duncan points out that job creation is the No. 1 priority for voters across the United States, and he says this bill gives state governments a long-term funding stream that will put Americans back to work by improving our Nation’s highway and transit systems.

“In the last Congress, the President and Democratic leaders were unable to bring their reauthorization proposal to the floor,” Duncan said in the written statement from Mica’s office. “Their proposals for funding the bill were unrealistic.  I can assure you that this bill is realistic and will ensure that the Highway Trust Fund does not go broke.”

The American Energy & Infrastructure Jobs Act authorizes approximately $260 billion over five years to fund federal highway, transit and safety programs, consistent with current funding levels. This will provide long-term stability for states to undertake major infrastructure projects. The bill also includes provisions to improve programs for freight and passenger rail transportation, and calls for funds collected for maintaining the nation’s harbors to be invested for that purpose – not redirected for other unrelated government expenditures.

In addition, this legislation contains no earmarks. The last surface transportation law approved by Congress in 2005 contained over 6,300 earmarks.

The House is expected to consider H.R. 7 later this month.

According to Mica’s office, The American Energy & Infrastructure Jobs Act improves transportation programs in a number of ways, including the following:

Program Reform & Consolidation

Currently, there are more than 100 federal surface transportation programs, many of which were created during the last 50 years to expand the scope of the original programmatic goals. Many of these programs are duplicative or do not serve a national interest, according to Mica.

The American Energy & Infrastructure Jobs Act reforms surface transportation programs by consolidating or eliminating about 70 programs that are duplicative or do not serve a federal purpose.

Increased State Flexibility

The American Energy & Infrastructure Jobs Act eliminates a number of mandates that prevent states from being able to fund their most critical infrastructure needs.  The bill ensures that states will no longer be required to spend highway funding on non-highway activities, although they will be permitted to fund such activities if deemed to be priorities. The bill also delegates more project approval authority to states.

Cutting Red Tape & Streamlining Project Delivery

Due to the federal bureaucracy and red tape, the project approval and permitting process creates needless infrastructure delays and cost increases. According to the Federal Highway Administration (FHWA), highway projects can take up to 15 years to complete, and a lengthy project approval process accounts for a majority of these delays.

The American Energy & Infrastructure Jobs Act streamlines and condenses the project review process by cutting bureaucratic red tape, allowing federal agencies to review transportation projects concurrently, and setting hard deadlines for federal agencies to approve projects, in addition to providing states with more approval authority.

More information from the markup of H.R.7 can be accessed here, including information regarding amendments.

(For a PDF of the American Energy and Infrastructure Jobs Act, click here.)

(For the 14-page summary of the American Energy and Infrastructure Jobs Act in a downloadable PDF format, click here.)

Click here for the report, Federal Surface Transportation Reauthorization:Moving Beyond SAFETEA-LU, by Joung H. Lee, associate director for finance and business development, American Association of State Highway and Transportation Officials (AASHTO) and deputy director, AASHTO Center for Excellence in Project Finance.

Mica is the chairman of the T&I Committee.

More information, including details on amendments, will be forthcoming later today, according to a written press statement released in the early morning hours Feb. 3.

For a PDF of the American Energy and Infrastructure Jobs Act, click here.

For the 14-page summary of the American Energy and Infrastructure Jobs Act in a downloadable PDF format, click here.

TIGER 2012 will make $500 million available for surface transportation projects having a significant impact on the nation, a metropolitan area, or region.

The previous three rounds of the TIGER program provided $2.6 billion to 172 projects in all 50 states, the District of Columbia and Puerto Rico. Demand for the program has been overwhelming, and during the previous three rounds, the Department of Transportation received more than 3,348 applications requesting more than $95 billion for transportation projects across the country.

“President Obama made clear in his State of the Union address that investing in transportation means putting people back to work, and that’s just what our TIGER program is doing in communities across the country,” said Secretary LaHood. “Americans are demanding investments in highways, ports, commuter rail, streetcars, buses, and high-speed rail. These kinds of projects not only mean a stronger economic future for the U.S., but jobs for Americans today.”

As in previous rounds, high-speed rail and intercity passenger rail projects remain eligible for funding. TIGER 2012 provides for the possibility of up to $100 million being used toward these projects.TIGER 2012 will also continue to encourage the development of transportation projects in rural areas, providing $120 million for rural transportation projects.

On Nov. 18, 2011, the President signed the FY 2012 Appropriations Act, which provided $500 million for Department of Transportation infrastructure investments.  Like the first three rounds, TIGER 2012 grants are for capital investments in surface transportation infrastructure and are to be awarded on a competitive basis.

Projects will be evaluated on primary criteria that include safety, economic competitiveness, livability, environmental sustainability, state of repair and short-term job creation.

Pre-applications are due Feb. 20 and applications are due March 19. Click here to view the Notice of Funding Availability.

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The initiative is a long-term bill that reforms federal transportation programs and promotes increased domestic energy production to create American jobs, according to the Office of Rep. John Mica (R-Fla.), chairman of the Committee on Transportation and Infrastructure.

The largest transportation reform bill since the creation of the Interstate Highway System, this is a five-year bill that streamlines the federal bureaucracy, cuts red tape that delays projects across the country, gives states more flexibility to determine their most critical infrastructure needs, provides states with the long-term stability to undertake major improvements, and encourages private sector participation in helping to finance transportation projects.

To access bill text, click here.

Profit in 2011 was $4.928 billion, an increase of 83 percent from $2.700 billion in 2010. Profit per share of $7.40 was up 78 percent from $4.15 in 2010. Excluding the impact of the acquisition of Bucyrus International Inc. (Bucyrus), 2011 profit was $7.79 per share, up 88 percent from a year ago.

Fourth-quarter sales and revenues in 2011 were an all-time quarterly record at $17.243 billion, an increase of 35 percent compared with $12.807 billion in the fourth quarter of 2010. Fourth-quarter profit was $1.547 billion compared with $968 million in the fourth quarter of 2010. Profit of $2.32 per share was 58 percent higher than the $1.47 per share in the fourth quarter of 2010.

“Our strategy is squarely focused on customers, and in 2011 our employees, suppliers and dealers delivered. We improved product quality, invested significantly in manufacturing capacity and product development, and improved our market position. We completed two large acquisitions – Bucyrus and Motoren-Werke Mannheim Holding GmbH (MWM) – in important growth industries that are a great strategic fit and provide our customers an even broader range of products,” said Caterpillar Chairman and CEO Doug Oberhelman in a written statement.

“We also delivered for stockholders with outstanding financial results, beating our previous 2008 profit record of $5.66 per share by more than 30 percent. It was a great year for cash generation as well with our Machinery and Power Systems (M&PS) operating cash flow near $8 billion – our best year ever,” Oberhelman added.

The 2011 increase in sales and revenues was the largest percentage increase in any year since 1947, and much of it was driven by demand for Caterpillar products and services outside of the United States, Oberhelman said.

“As a result, 2011 was a record-breaking year for U.S. exports at nearly $20 billion, which supported thousands of jobs in the United States, demonstrating the tangible benefits of free trade,” Oberhelman said. “Sales and export growth creates jobs, both in the United States and around the world. Not including acquisitions, our global workforce grew by more than 14,000 in 2011, and since the start of 2010, we have increased our workforce by more than 33,000, with more than 14,000 of those jobs in the United States.”

2011 Accomplishments

Strong growth in most of the industries we serve and a focus on executing our updated strategy provided the foundation of our record-breaking financial results in 2011. Our strategy is centered on operational excellence that drives value for our customers, and in 2011 we improved in a wide range of operational areas around the company.

• The Caterpillar Production System (CPS) is the way of life at Caterpillar and has been a principal driver in improvements in safety, quality, velocity and efficiency. We continued to improve in each of these areas in 2011 and achieved new records in many areas.
• The safety of our workforce, contractors and visitors is a fundamental value for Caterpillar, and we are pleased that our enterprise safety metrics improved again in 2011 – an 83-percent improvement in safety performance since 2003.
• Product quality is important to customers, and in 2011 we continued to see meaningful improvements in product reliability.
• Given the sizable increase in demand in 2011, we stretched our factories and our suppliers to produce more. The results were outstanding, and we were able to significantly increase production and improve our on-time delivery performance. We thank our suppliers for a remarkable year in support of our business.
• For many of our products, demand in 2011 was very strong and above capacity. Throughout the year at our factories around the world, we, along with many of our suppliers, invested in production capacity to support customers. Despite the increases in capacity and expected additions in 2012, we are still very tight on many products and are currently quoting extended delivery times for some products. For example, we are now quoting delivery times into 2014 for many models of large trucks.
• 2011 saw significant new product introductions related to new emissions requirements in the United States and Europe and continued the most extensive new product development program in Caterpillar history. The introduction of these new products has gone well, and feedback from dealers and customers has been very positive.
• Another important consideration for customers is aftermarket parts availability, and we made notable improvements in delivery performance in 2011.
• While it was a good year for the industries we serve, it was an even better year for Caterpillar. In the aggregate, and for most of our products, our sales increased at a faster rate than the overall industry. Better quality, good delivery performance, our investment in capacity, the performance of our suppliers and modest price increases all helped drive better value for our customers and better performance for Caterpillar.
• Over the past year and a half we have made three large acquisitions – Bucyrus, Electro-Motive Diesel (EMD), and MWM. Integrating them into Caterpillar is a high priority and a major focus, and we are pleased with the progress.
• Our working capital metrics in 2011 notably improved for payables and receivables, and the improvements were important to the generation of record M&PS operating cash flow.
• Leadership development is critical for our long-term success. In 2011, we invested in our new leadership development program, which is designed to build high-performing teams and prepare leaders for the future. More than 7,000 people were involved in the program in 2011.

2012 Outlook

The outlook for 2012 sales and revenues has increased and is expected to be in a range of $68 to $72 billion. Profit per share is expected to be about $9.25 at the middle of the sales and revenues range. The outlook includes full-year results for the two large acquisitions that we completed in 2011 – Bucyrus and MWM.

“We’re expecting 2012 to be another year of good growth and continued focus on executing our strategy. While we have much to do in 2012, we’ll be particularly focused on four things – continuing to improve quality, our investment in product development, integrating our acquisitions and adding production capacity. We’re very tight on production capacity for many of our products and are continuing to invest in new and existing factories. Our investments in capital expenditures and R&D will certainly add cost in 2012, but it’s the right thing to do. We expect 2012 to be a new sales record at a time when construction activity in the United States and Europe – two large markets for us – are still depressed. Our employees and suppliers have done a great job taking care of our customers, but we have to be prepared for recovery in the developed world beyond 2012 and continuing growth in emerging markets,” Oberhelman said.

“In 2011 our investment in M&PS capital expenditures was $2.6 billion, with nearly 60 percent of that investment in the United States. For 2012, we expect capital expenditures of about $4 billion. We are transforming Caterpillar with an intense focus on customers driving a reinvigorated sense of urgency as we invest and grow the company like never before. As I look forward to the goals we set for 2015, I am more confident than ever that we will deliver, and we’re in a hurry to do it,” Oberhelman said

Investors may listen to the live webcast of the conference call on the Granite website, http://investor.graniteconstruction.com/index.cfm.

An archive of the webcast will be available approximately three hours after the call on the company’s website. The live call may also be accessed by calling 877-643-7158, conference ID 47718778. A replay will be available approximately two hours after the live call through May 15, 2012 by calling 855-859-2056, conference ID 47718778.