But being one of 11 Iowa highway “stimulus” projects worth, in total, $13.7 million, makes it a little less ordinary. So does its new surface.

The unbonded concrete pavement overlay of Oak Crest Hill Road from south of the city limits of Hills to the Washington County line was a nearly $1.845 million job completed by Iowa City, Iowa-based contractor Metro Pavers and funded through the American Reinvestment and Recovery Act (ARRA), more commonly known as “the stimulus.”

Iowa received nearly $358 million for state and local roadway, bridge, trail and freight rail projects through the stimulus, and Governor Chet Culver’s I-JOBS initiative kicked in $115 million for transportation projects.

The Oak Crest Hill Road concrete overlay covered two lanes and spanned approximately 5.5 miles from start to finish. The county required traffic to be maintained in one direction at all times, says Nick Kempf, co-owner of Metro Pavers.

“Because it is not a primary highway, it was not that heavily used, but they [the county] still wanted to improve the road system,” says Kempf.

“They tried to ‘re-profile’ it and take out some of the bumps.” And work went all the more easily, he says, because “most people along the roadway were happy to see the road improved.”

Straightforward doesn’t mean easy

The overall job was fairly straightforward, says Kempf, but that doesn’t mean it didn’t have some challenges. The University of Iowa is located in Johnson County and this means a fair amount of bicyclists. As part of the project, the county asked that bicycle lanes be developed “to make it safer,” Kempf says. However, this means the road has an extraordinary width for a secondary road. “The driving lanes are 24 feet plus the extra lane to bring it up to about 34 to 36 feet,” Kemps says. As a secondary road, there were no contraction baskets, Kempf pointed out, so his team cut every 15 feet for joining.

There has been a great deal of whitetopping in Johnson County. Concrete overlays have become commonplace in Iowa as an economical means to rehabilitate the secondary road system.

But for this project, rather than beginning with the removal of existing concrete, the concrete overlay was placed over an asphalt roadway. It was also poured on the shoulders that were compacted and then built up to accommodate the new bike lines. “We tried to maintain about 6 inches on the old roadbed and 8 inches on the shoulder,” Kempf says. “Our ditches had to be filled, compacted and then brought up to grade.”

The rock laid after the shoulders were compacted includes crushed recycled concrete and modified sub base. Although this wasn’t a difficult process, at times it was challenging. “We’d have weeks where the dirt contractor could not work because it was too wet,” Kempf points out. “We had to deal with the weather. We had the shoulders built up and were ready to pour on a Saturday, but then we had 2 inches of rain the night before.”

Keeping it cool
The timing of the job also presented challenges.

The Oak Crest Road job was the first time Metro Pavers undertook a concrete overlay in summer. Previous overlays had been done in the fall. The summer presented challenges,
but by waiting until fall Metro ran the risk of the maturity curve taking longer. And as the day warmed up, the asphalt had to be kept cool. “We had to bring in a water truck to cool off the asphalt before we could pour on it,” Kempf explains. “We didn’t need to bring it in until between 10:30 a.m. or 11 a.m., but then we would need it all afternoon.”

According to the specs, the asphalt couldn’t be more than 90 degrees Fahrenheit because it would set on the overlay but not on the rock, Kempf points out. “We had to keep a consistent ground temperature,” he says. “We had to cool it down and stay just ahead of the paving machine. We had to have it cooled off, but it couldn’t be wet.”

Concrete overlays can be a good choice for the widening of an old pavement with narrow traffic lanes, the addition of new travel lanes – as was done with the addition of shoulders for bicyclists on Oak Crest Hill Road – or the extension of ramps, according to the University of Iowa National Concrete Pavement Technology Center’s (NCPTC) “Guide to Concrete Overlay Solutions.”

(For a downloadable PDF of the Innovationsguide, go to http://www.cptechcenter.org/publications/guide_concrete_overlays.pdf.) “Adequately designed and constructed
widening can improve both faulting and cracking performance
of the pavement,” according to the guide. “Widened slabs should be used with care with concrete overlays on stiff foundations (such as on concrete pavements) because of the increased risk of longitudinal cracking.”

NCPTC gives these rules of thumb for widening:
• Keep joints out of wheel paths, especially for bonded resurfacing.
• Tie longitudinal joints with #4 bars to prevent separation.
• Keep panels as square as possible (1.5:1 maximum)
• The width of widening rather than depth has more of a positive effect in reducing loads to the top of the existing
pavement.

About the Job
Project: Concrete pavement overlay, unbonded, for Oak Crest Hill Road in Johnson County, Iowa, from south of the city limits of Hills to the Washington County line Award from Iowa DOT: $1,845,120.47

Contractors: Metro Pavers Inc., Iowa City, Iowa

Equipment used: CMI trimmer, Power Pavers/Power Curbers 2700 slipform paver and Power Pavers/Power Curbers TC-2700 texture curing machine. “The 2700 slipform paver worked very well for the job, Kempf says. “It’s very mobile for the kind of work we have, but it’s still heavy enough to do this kind of work. It’s a two-track machine – easy to load and easy to unload for transport.”

For a downloadable PDF of this article, click here or go to the January 2012 edition of Aggregates Manager. Go to http://www.betterroads.com and click on “Digital Edition.”

For a downloadable PDF of this report, which includes pie charts and breakout boxes with trends, business trend ratings, and more, click here.

Momentum is sometimes hard to define. In sports, it may be a crucial play that changes the outcome of the game. In business, however, it might be something as simple as a sale that leads to an unexpected customer base. Often, it may seem like a small pebble, but once it starts rolling downhill — gaining mass and velocity along the way — its impact can be significant.

Movement alone, however, is not enough. Just look at the results of our forecast studies during the last eight years, and it’s clear that not all momentum is good momentum. For example, consider the industry’s historical response to business conditions. When answering our first forecast in 2004, 84.5 percent of respondents indicated positive business results (excellent, very good, or good). For a three-year window between 2008 and 2010, however, those numbers plummeted with an all-time low in 2009 when just one in three respondents (34 percent) reported favorable business ratings. Those numbers increased slightly in 2010, but 2011 respondents gave the most favorable business ratings (43.4 percent positive) since 2007.

Another favorable indication is the accuracy demonstrated in yearly predictions and the subsequent results. With the exception of those predicting a fair year, responses from last year’s forecast results versus this year’s actual results are all within 5 percent, and most forecast discrepancies erred toward being overly pessimistic.

Excellent: 1.6 percent forecast; 5.7 percent actual (+4.1 percent difference);

Very Good: 12 percent forecast; 13.2 percent actual (+1.2 percent difference);

Good: 24.8 percent forecast; 24.5 percent actual (-0.3 percent difference);

Fair: 44.0 percent forecast; 34.9 percent actual (-9.1 percent difference); and

Poor: 17.6 percent forecast; 21.7 percent actual (+4.1 percent difference).

From a regional perspective, producers in the Northeast were the most likely to report positive results with nearly six in 10 (58.3 percent) indicating positive business results in 2011, while approximately two-thirds (67.5 percent) of those in the South reported fair or poor results.

Small producers (under 500,000 tons per year) were the most likely to indicate positive business results, with the level of optimism diminishing in a direct correlation to increasing tonnage until hitting the large end of the spectrum with producers of more than 5 million tons per year. This group was slightly more inclined to report favorably, with one in three reporting favorable results, compared to three in four reporting fair or poor business results in the next largest production category (3 million  to 5 million tons per year).

In terms of operators experiencing changes in production quantities throughout 2011, an equal number said they’d increased and decreased production. It’s worth noting that, of those reporting an increase, the average increase was 25 percent higher production. Among those indicating a decrease, the average decrease was 19 percent. The largest gains were had among producers of crushed stone and sand and gravel (30.8 percent reported an increase) and among those in the North Central region (43.5 percent indicated higher production levels).

So what’s next?

While gains appear evident within pockets of the industry, several years of inertia are challenging to reverse. Looking forward in 2012, small improvements are being predicted in most categories. Comparing forecast projections from 2012 to 2011, 6.6 percent expect an excellent year (+5 percent), 12.3 percent expect a very good year (+0.3 percent), and 26.4 percent expect a good year (+1.6 percent). In terms of negative expectations, 35.8 percent expect a fair year (-8.2 percent), while 18.9 percent expect a poor year (+1.3 percent) in 2012.

Sand and gravel producers are the most concerned looking forward. Nearly nine in 10 (88.9 percent) expect a fair or poor year in 2012. Those working in the Northeast and North Central regions are the most optimistic with 66.6 and 52.2 percent, respectively, calling for positive business results. In terms of size, small operators are the most hopeful, with 68.4 percent of those producing up to 500,000 tons per year and 53.3 percent of those producing 500,001 to 1 million tons per year calling for positive results.

In terms of production quantities, sand and gravel producers are the most upbeat. Twice as many anticipate an increase in production compared to those who expect tonnage to decline.

Consistency is key from a regional perspective. The majority of operators in all four regions expect production quantities to remain about the same. That said, operators in the North Central region were the most optimistic with 34.8 percent anticipating an increase compared to 13.0 percent calling for a decrease. Producers in the South are still skittish on demand; they were the only region with more respondents anticipating a decline (20.9 percent) than an increase (16.3 percent).

Personnel matters

In 2011, employment levels stabilized throughout much of the aggregate industry. Overall, 27.4 percent (9.6 percent fewer than in 2010) of respondents said the work force decreased throughout the year, while 20.8 percent said their work force grew.

Crushed stone and sand & gravel operators were the most likely to report having a smaller work force (41.0 percent), while sand and gravel operators were most inclined to boost their numbers (33.3 percent). Crushed stone only operators had the most stable work force segment with 58.3 percent indicating the size of their work force was about the same as during the previous year.

From a regional perspective, the South’s declining production levels were reflected in its staffing; 46.5 percent of operators there reported work force declines. The most growth was seen in the North Central region where 26.1 percent of respondent’s operations grew their numbers.

By worker category, other hourly labor was the category to experience both the highest increase (13.2 percent) and the highest decrease (27.4 percent). The number of women in the workplace grew, as it was the only category to be more likely to report work force expansion (10.4 percent) than contraction (6.6 percent).

Industry challenges

Competition for sales has dominated operator concerns during the last four years. While the number who ranked it as a major concern diminished this year (25.5 percent), nearly 60 percent more called it a minor problem. Taken as a combined total, almost 85 percent noted it as a challenge — 25 percent more than the next most widespread problem.

When asked how they were dealing with this issue, many respondents indicated that they have lowered prices to seal the deal, including break-even pricing. Some in vertically integrated operators noted using package deals to streamline costs. Others say they are analyzing markets, implementing long-term strategic planning, and exploring new and growing markets. Customer service, customer contact, and a focus on quality are among the business strategies being employed to maintain customer loyalty.

Other concerns, such as regulatory compliance and aggregates availability, are increasingly important to this year’s respondents, but the dominance of competitive sales indicates that the aggregate industry — while in a better place than recent years — remains intensely focused on each job and each customer.

Improvements may be modest and regional, but they do, indeed, appear to be real. If these results and those forecast for 2012 bear out, then the aggregate industry needs to ensure that objects in motion stay in motion. From there, it’s just a matter of increasing mass and velocity.

Methodology, Objectives, and Sources

The objective of the 2012 Aggregates Manager Forecast Survey was to determine business, production volume, spending, and workforce trends. In November 2011, Aggregates Manager e-mailed questionnaires to a random selection of readers in the crushed stone and sand and gravel, crushed stone-only, and sand and gravel-only industries. A total of 106 useable surveys were completed.

BY THE NUMBERS

2011 Business Rating Trends

Excellent         Very Good       Good                 Fair                  Poor

2004                10.4%              32.4%              41.7%              11.6%                3.9%

2005                12.4%              29.7%              36.6%              17.4%                3.9%

2006                12.9%              32.2%              35.9%              15.1%                3.9%

2007                  6.6%              18.6%              35.7%              28.5%              10.5%

2008                  2.3%                9.8%              30.3%              35.8%              21.8%

2009                  2.9%                7.2%              23.9%              38.8%              27.3%

2010                  1.6%              11.2%              22.4%              38.4%              26.4%

2011                  5.7%              13.2%              24.5%              34.9%              21.7%

2012 (forecast)  6.6%              12.3%              26.4%              35.8%              18.9%

*Due to rounding, all numbers may not equal 100 percent of respondents.

Looking forward, 6.6% of operators expect an excellent year in 2012; the highest number reported in this category since 2007. Those expecting a very good year dropped slightly from 2011 results (from 13.2 to 12.3%), but anticipated results are generally more favorable for 2012 following reports of a slightly improved year in 2011.

Source: Aggregates Manager Forecast Studies

2011 Production Volumes vs. 2010 Production Volumes

Increased: 29.2%

Stayed the same: 41.5%

Decreased: 29.2 %

Average increase: 25.0%

Average decrease: 19.0%

By Primary Business

Crushed Stone &        Crushed           Sand &            Other

Sand & gravel             Stone Only      Gravel Only

Increased         30.8%                          16.7%              22.2%              38.2%

Stayed about   38.5%                          45.8%              44.4%              41.2%

the same

Decreased       30.8%                          37.5%              33.3%              20.6%

2011 production numbers showed some interesting trends. While half of crushed stone producers experienced an increase in production during 2010, they were the most likely to report decreased production in 2011. Producers of both crushed stone and sand and gravel showed greater stability with 14.4% more of respondents reporting consistent production levels in 2011 (38.5%) as compared to 2010 (24.1%). That same category had 8.1% fewer producers reporting a decrease in production between 2011 (30.8%) and 2010 (38.9%).

By Annual Production

Under              500,001-          1,000,001 million-       3,000,001 to    More than

500,000 tons   1 million tons  3 million tons              5 million tons  5 million tons

Increased         36.8%              26.7%              20.8%                          25.0%              29.4%

Stayed about   39.5%              53.3%              41.7%                          33.3%              41.2%

the same

Decreased       23.7%              20.0%              37.5%                          41.7%              29.4%

Based on size of operation, smaller operations appear to have fared better than their larger counterparts in 2011. Operators in the two smaller categories (under 1 million tons per year) were more likely to report an increase in production than a decrease. Mid-sized operators (1 to 5 million tons per year) were more likely to report decreased production rather than increased. The largest operators (more than 5 million tons per year) straddled the center with an equal number reporting increased and decreased production.

By Region

Northeast        North Central  South               West

Increased         33.3%              43.5%              16.3%              37.5%

Stayed about   25.0%              17.4%              53.5%              33.3%

the same

Decreased       41.7%              39.1%              30.2%              29.2%

Following a strong year in 2010, operators in the Northeast saw a reversal of fortunes with nearly 42% reporting decreased production in 2011. The South experienced a particularly challenging year in 2010, with more than half of operators (51.3%) reporting decreased production. This year, more than half (53.5%) report stable production, but more than one in three has still seen decreased production. The bright spot appears to be the North Central region, where 43.5% report increased production.

Source: Aggregates Manager 2012 Forecast Study

2012 Production Expectations vs. 2011 Results

Increase: 26.4%

Stay the same: 57.5%

Decrease: 16.0 %

Average increase: 14.9%

Average decrease: 11.6%

By Primary Business

Crushed Stone &        Crushed           Sand &            Other

Sand & gravel             Stone Only      Gravel Only

Increase           23.1%                          16.7%              22.2%              38.2%

Stay about       59.0%                          54.2%              66.7%              55.9%

the same

Decrease          17.9%                          29.2%              11.1%              5.9%

Caption: Looking toward 2012, the majority of operators — regardless of product category — expect production levels to remain the same, with two in three sand and gravel operators predicting stable production. After experiencing the largest negative impact in 2011, crushed stone operators offered the greatest variance in year-over-year expectations. The number expecting production to increase dropped from 25% last year to 16.7% this year while the number expecting production to decrease jumped from 6.4% last year to 29.2% this year.

By Annual Production

Under              500,001-          1,000,001 million-       3,000,001 to    More than

500,000 tons   1 million tons  3 million tons              5 million tons  5 million tons

Increase           28.9%              26.7%              25.0%                          8.3%                35.3%

Stay about       65.8%              60.0%              50.0%                          41.7%              58.8%

the same

Decrease          5.3%                13.3%              25.0%                          50.0%              5.9%

In terms of size of operation, operators at both ends of the spectrum voiced generally positive expectations for 2012. More than a third of the largest operations (more than 5 million tons per year) expect production to increase, while only one in 20 (5.3%) of the smallest producers (under 500,000 tons per year) expect production to decrease. Mid-size producers (3 to 5 million tons per year) were the least optimistic with one in two forecasting a decrease in production.

By Region

Northeast        North Central  South               West

Increase           33.3%              34.8%              16.3%              29.2%

Stay about       50.0%              52.2%              62.8%              58.3%

the same

Decrease          16.7%              13.0%              20.9%              12.5%

Throughout the nation, most operators are calling for fairly stable production levels in 2012. The most optimistic areas are in the Northeast and North Central where one in three expects an increase in production capacity. The South is the only region where more operators anticipate a decrease than an increase.

Source: Aggregates Manager 2012 Forecast Study

Capital Equipment Budget Expectations

(Comparison of 2005-2012)

2005    2006    2007    2008    2009    2010    2011    2012*

Increase                       34%     32%     31%     20%     10%     13.3%  20.8%  22.6%

Stay the Same             54%     52%     52%     49%     42%     44.5%  50.0%  52.8%

Decrease                      12%     16%     17%     31%     48%     42.2%  29.2%  24.5%

In 2012, more than one in five operators expects to increase capital expenditures. This anticipated level of increased equipment procurement is the highest since 2007. The number of those who expect to decrease capital investment levels continues to decline; this may be indicative of the aging equipment fleets in some operations.

* Forecast data

Source: Aggregates Manager Forecast Studies

Major Problems Facing Aggregates Managers

(Four-Year Comparison)

2008    2009    2010    2011

Competition for Sales             31%     34.3%  33.6%  25.5%

Aggregates Availability          19%     12.7%  12.8%  18.9%

/Permitting

Retaining Workers                  12%       4.9%  12.0%  6.6%

Regulatory Compliance          12%     11.7%  11.2%  22.6%

Regulatory Fines*                   –          11.6%  12.8%  11.3%

Water Availability                     4%       3.0%    3.2%  2.8%

Community Relations               3%       4.4%    4.8%  5.7%

Safety                                        3%       1.0%    4.8%  2.8%

*New category for 2009.

Competition for sales has dominated operator concerns since 2008, but the number of operators listing this as their top concern (25.5%) is the lowest in recent years. The category showing the greatest growth is regulatory compliance, with more than double the number listing it as a major problem in 2011 compared to 2010. Concerns over aggregate availability and permitting also experienced significant growth this year with nearly one in four reporting it as a major problem; the highest level since 2008.

Source: Aggregates Manager Forecast Studies

It’s frustrating (again) to have to say it, but it appears that this new year will offer us more of the same. Last year virtually repeating itself, as did the year before that and the year before that.

But this time there appears to be at least some opti­mism that the economy’s vicious cycle may be approach­ing its end, albeit with more of a whimper than a bang. And within a handful of bright, or at least not gloomy, spots there may be opportunities for transportation agencies and highway and bridge contractors to be pro-active in their fight against the agonizingly slow recession climb-out.

Not only is reauthorization a pivotal event (whether it happens or doesn’t) but also the states’ struggles to fund even essential work, and the need, that can no longer be put off, to do repair or maintenance work will be key influences. And then there is an election in November. As one leading transportation industry group analyst told Better Roads in Washington, D.C., in December: “2012: It’s a make-or-break year for transportation infrastructure.”

As the American Road and Transportation Builders Association (ARTBA)’s Dave Bauer points out, there are “50 autonomous markets” out there, making it not only difficult to come up with a single estimate for the United States, but also meaning that amid a sea of gloomy news there can be patches of economic sunshine that could make 2012 a very different place for some local or re­gional contractors and agencies.

A look at some of the leading forecasts for 2012 find a general agreement on the course the year will follow.

If economic forecasting is something of a crystal ball process, 45 professional forecasters surveyed by the Federal Reserve Bank of Philadelphia may be the best gazers in the business. These forecasters, surveyed by the Fed in November, predicted, on average, a real GDP growth of 2.4 percent in 2012 (the same figure that the National Association for Business Economics predicts; but Morgan Stanley and Kiplinger estimates are closer to 2 percent) and a 2012 unemployment rate of 8.8 percent. The Fed’s forecasters predicted growth of 2.7 percent in 2013 and 3.5 percent in 2014. The forecasters also predicted unemployment at 8.4 percent in 2013 and 7.8 percent in 2014. They expect nonfarm payroll employment to grow at a rate of 123,200 a month in 2012, compared to 106,500 a month in 2011. These same Fed forecasters estimate core Personal Consumption Expenditures (PCE) inflation in 2012 will average 1.6 percent, and 1.8 percent in 2013.

A Wall Street Journal survey of 52 economists in November put GDP growth in 2012 at 2.3 percent and 2.6 percent in 2013, with unemployment at the end of 2012 at 8.7 percent, and at 8.1 percent at the end of 2013.

But there seems to be little doubt the unemployment rate in construction, including transportation infrastruc­ture, will exceed the national average through 2012 as it did, by a wide margin, through 2011.

Because the Federal Reserve is keeping the lid on short-term interest rates and also trying to bring down already low long-term rates, various estimates suggest there will be little significant movement of rates in 2012.

The election has the potential to be very influential to highway and bridge industries both before and after the polls close. “2012 is an election year, which does not body well for meaningful action in Washington,” says Association of Equipment Manufacturers (AEM) President Dennis Slater. “Both sides are already in full ‘campaign mode,’ it seems, and this presents a real danger of a stalling economy.” But the November elections may also offer some possible cause for optimism. A late-winter or early spring reauthori­zation, increasingly finding bipartisan support and looking more and more likely, might well help cement the idea in the public mind that transportation infrastructure is one of the essential investment programs for America’s future.

This in turn may well become a position that might replace the refuse-to-spend-anything stances of some hardline politicians.Transportation investment may also be reason­ably popular in the new Congress of 2013 which could be more supportive of transportation infrastructure funding than this one.

TRIP’s report, “The Top 50 Surface Transportation Projects to Support Economic Growth and Quality of Life in Maine,” identifies and ranks the projects needed to provide Maine with a transportation system that can support the increased movement of people, goods and resources throughout the state.  The most needed surface transportation improvements in Maine include 35 projects to build, expand or modernize highways or bridges, five projects to improve rail or public transportation, five maritime or port projects, three multi-modal projects, one aviation project and one project to improve the state’s trail system. These improvements would enhance economic development opportunities throughout the state by increasing mobility and freight movement, easing congestion, and making Maine an attractive place to live, visit and do business.

According to the TRIP report, the most needed projects for the state’s economic growth are as follows:

A full list of needed projects, descriptions and their impact on economic development can be found in the appendix of the report.

“Among the most significant challenges going forward will be to change a culture of complacency as it relates to lives lost on our roadways. AAA envisions a transportation system with a comprehensive approach to safety which includes solutions that lead to safer drivers driving safer vehicles on safer roads,” said Pat Moody, public affairs manager at AAA Northern New England.

Enhancing critical segments of Maine’s surface transportation system will boost the state’s economy in the short-term by creating jobs in construction and related fields. In the long term these improvements will enhance economic competitiveness by reducing travel delays and transportation costs, improving access and mobility, improving safety, and stimulating sustained job growth, improving the quality of life for the state’s residents and visitors.

Sustaining Maine’s long-term economic growth and maintaining the state’s high quality of life will require increased investment in expanding the capacity of the state’s surface transportation system, which will enhance business productivity and support short- and long-term job creation in the state.

“Maine can’t get where it wants to go – in both a literal and an economic sense – without an efficient transportation system,” said Will Wilkins, executive director of TRIP. “It is critical that Maine’s transportation system is adequately funded at the local, state and federal level. Congress can take an important first step by passing adequately funded federal surface transportation legislation, which has been delayed far too long.  Thousands of jobs and the state’s economic well-being are riding on it.”

TRIP ranked each transportation project based on a rating system that considered the following: short-term economic benefits, including job creation; the level of improvement in the condition of the transportation facility, including safety improvements; the degree of improvement in access and mobility; and the long-term improvement provided in regional or state economic performance and competitiveness.

If this hostile takeover were approved, it would create a U.S.-based company that, as of Dec. 9, had a combined market capitalization of $7.7 billion and a combined total enterprise value of $11.4 billion, according to Martin Marietta. The combined mineral reserves of both companies would be 28 billion tons.

Martin Marietta President and CEO Ward Nye, Aggregates Manager’s 2006 AggMan of the Year, says the combination of both companies “is a compelling opportunity for both companies’ shareholders, customers, employees, and the communities we serve.”

Nye notes that by bringing together what he calls “complementary assets,” it creates the opportunity to create a global aggregates leader.

Together, Vulcan and Martin Marietta expect to achieve cost synergies of $200 million to $250 million.

“We also intend to maintain the dividend of the combined company at Martin Marietta’s current rate of $1.60 per Martin Marietta share annually, or the equivalent of 80 cents per Vulcan share annually, based on the proposed exchange ratio,” Nye said in a written statement. “This dividend rate is 20 times Vulcan’s current level.”

The proposal, including the exchange offer is unanimously supported by Martin Marietta’s board of directors. Under the terms of the exchange offer, each outstanding share of Vulcan would be exchanged for 0.50 Martin Marietta shares.

The offer represents a premium for Vulcan shareholders of 15 percent to the average exchange ratio  based on the clsing share prices for Vulcan and Martin Marietta during the 10-day period ended Dec. 9 and 18 percent to the average exchange ratio based on the closing share prices for Vulcan and Marietta during the 30-day period ended Dec. 9, 2011.

Nye says Martin Marietta is bringing the proposal directly to Vulcan shareholders after the company stopped participating in private discussions toward a negotiated transaction, which began more than a year ago.

Martin Marietta’s proposal contemplates directors from both companies serving on the combined company’s board. It also proposes that Vulcan Chairman and CEO Don James, serve as chairman of the board and that Nye serve as president and CEO. Executives from both companies would serve on the management team, according to the proposal.

The combined company would be headquartered in Raleigh, N.C., and maintain a major presence in Birmingham, Ala.

According to a press release on Vulcan Material’s website, the company says the company’s board of directors “will carefully review the proposal and determine the course of action that it believes is in the best interests of the company and its shareholders.”

At the time of this posting, Vulcan’s Board of Directors said it  intended to advise shareholders of its recommendation by “making available to shareholders and filing with the Securities and Exchange Commission a solicitation/recommendation statement on Schedule 14D-9.”

Vulcan Materials shareholders are being advised not to take any action at this time pending the review of the proposed exchange offer by the company’s board.

Goldman, Sachs & Co. is acting as financial advisor and Wachtell, Lipton, Rosen & Katz is acting as legal advisor to Vulcan Materials.

Look for more on this in an upcoming edition of Aggregates Manager.

In the first nationwide effort to identify specific stretches of highway responsible for significant traffic congestion at different times and different days, the Texas Transportation Institute’s (TTI) 2011 Congested Corridors Report helps motorists ascertain exactly where to expect traffic delays and how to plan for them.

Researchers for the TTI (a Texas A&M University System agency) report noted that the corridors included in the report were identified by the data itself.

INRIX, a traffic data and analytics provider, originated the corridor approach, using 10 hours of congestion per week to define a starting point for a congested corridor. To be considered a “corridor,” according to the INRIX standard adopted for this report, congestion should impact a freeway segment at least three miles long.

“Until now, we’ve been able to measure average congestion levels, but congestion isn’t an ‘average’ problem,” TTI Research Engineer Bill Eisele noted in a written statement about the report. “Commuters and truckers are understandably frustrated when they can’t count on a predictable trip time from day to day.”

Eisele credited the data and corridor listing provided by INRIX with making it possible for researchers to quantify traffic congestion, and the even more frustrating variation in congestion from day to day in major urban areas across the country.

The report describes congestion problems in 328 seriously congested corridors over a variety of times – all day, morning and evening peaks, midday, and weekends. Much of our national congestion problem exists in a relatively small amount of our freeway system.

Not only were these roads found to have more stop-and-go traffic than others, they were also much less predictable — “so, not only does it take longer, commuters and truckers have a difficult time knowing how much longer it will take each time they make the same trip” said co-author David Schrank.

However, even more significant, Eisele told Aggregates Manager, is that the 328 corridors studied represent just 6 percent of the nation’s lane miles but account for 36 percent of the country’s urban congestion.

“There are a relatively small amount of roads representing more than one-third of the congestion on roadways,” Eisele said in a phone interview. “This is striking. These are the places that are ripe for investment. There is probably a fair amount of benefit if cities and states can focus on these congested corridors.”

However, investment is made will vary depending on location. In some areas, Eisele pointed out, investment might mean additional lanes or additional transit such as rail or bus. In other areas it might mean aggressively clearing crashes off of a highway so additional congestion is not endured.

“It comes down to reassessing how and when we use the roadway system,” Eisele said. ”Do we all need to drive at the same time? Flex time and telecommuting could make some impact on congestion. This needs to be worked on with the business community.”

Although there is no single best way to fix the problem, the best solutions will come from efforts that have meaningful involvement from everyone concerned — agencies, businesses and travelers.

The study finds that the “best approach” is to consider all the congestion solutions are the following:

• Traditional road building and new or expanded transit facilities;
• Traffic management strategies such as aggressive crash removal;
• Demand management strategies like improving commuter information and employer-based ideas such as telecommuting and flexible work hours; and
• Denser development patterns with a mix of jobs, shops and homes so people can walk, bike or take transit to more and closer, destinations.

Eisele suggests that development patterns be considered for communities and cities. “Think about the trips you make on a daily basis — home, kids, work, medical,” he said. “If we can place our schools and places of work closer together, we can minimize trips.” Eisele does admit that in some cases, nothing may able to be done. “In some places it makes sense, but it in other places it may not be an option. There might not be much that can be done in some areas,” he noted. “But when you’re thinking about buying our home, look at how transportation plays a role. This is all part of the decision…and part of the solution.”

Adds study author Tim Lomax. “If cities and states make the right investments in our most congested highway corridors, the return on those investments will be substantial. “Not only will we see more reliable trips for travelers and trucks, but we can also expect to see greater productivity and more jobs.”

For the full report, go to http://mobility.tamu.edu/corridors/.

Kent Johnson, an assistant research engineer at the Center for Environmental Research and Technology, is working on the two-year hybrid emissions project being funded by the California Air Resources Board (CARB). The project will allow researchers to evaluate the emission reduction benefits of two commercially available hybrid construction vehicles: a Caterpillar bulldozer and a Komatsu hydraulic excavator

Scientists at the University of California, Riverside’s Center for Environmental Research and Technology (CERT) have received a $2 million contract for a first-of-its-kind study of hybrid construction vehicles.

The two-year project, which is being funded by the California Air Resources Board (CARB), will allow researchers to evaluate the emission reduction benefits of two commercially available hybrid construction vehicles: a Caterpillar bulldozer and a Komatsu hydraulic excavator.

“Hybrid construction vehicles are just now becoming available,” Kent Johnson, an assistant research engineer at CERT and the principal investigator on the project, said in a written statement. “We have been asked to use our emissions testing experience to quantify what their benefit is.”

Johnson will be assisted by two co-principal investigators: Tom Durbin, a research engineer, and Wayne Miller, who lead the emissions and fuels research group at the Center for Environmental Research and Technology.

The project is the latest in a nearly 20-year history of emissions testing at the CERT. Initial research focuses on cars in a stationary setting. Later projects shifts to trucks and on-the-road testing. Currently, much of the work is done with portable emission measurement systems (PEMS), which have been used on everything from on-road and off-road vehicles, stationary sources, locomotives, port vehicles, air craft, harbor craft, and ocean-going vessels.

The research is part of a larger effort by CARB to expand the use of hybrid technology to help meet the goals of AB 32, a 2006 state law that aims to reduce greenhouse gas emissions to 1990 levels by 2020. That would be about a 30-percent reduction. It also calls for an 80-percent reduction below 1990 levels by 2050.

Little is known about the potential benefits of hybrid technologies for construction equipment because of their unique and diverse duty cycles when used, according to CERT. Manufacturers are saying the hybrid vehicles reduce fuel needs by 20 percent and cut emissions by 30 percent, Johnson said.

The $2 million will be divided two ways, Johnson said. Half of it will be used as an incentive voucher to get 20 to 30 hybrid construction vehicles in use. The other half will fund testing in six vehicles, which will be scattered throughout California.

Behavior of those vehicles will be characterized on a second-by-second basis during in-use operations at construction sites using portable emission measurement systems. Researchers at CERT will design standardized tasks, such as lifting a heavy object.

The performance of the hybrid vehicle will then be compared to that of conventional diesel-powered vehicles.

The project will help establish the methodology for making comparisons under such varied conditions. The project will also consider the differences between emerging hybrid implementations by leading manufacturers.

The project may provide data that could contribute to a hybrid incentive program under AB 118, a 2007 law that established voluntary incentive program administered by CARB to fund clean vehicle and equipment projects, research on biofuels production and the air quality impacts of alternative fuels, and workforce training, according to CERT.

As the national unemployment rate for the American construction industry increased to 13.9% in October, it is unacceptable that a minority of the United States Senate has blocked the consideration of the Rebuild America Jobs legislation.

This disappointing vote reinforces the frustration that our members have with those 49 Senators who refused to allow an important, and much-needed debate on infrastructure legislation that would have put thousands and thousands of American workers back on the job. The unified opposition of Republican Senators, joined by Senators Ben Nelson and Joe Lieberman, demonstrates that there are far too many Senators who fail to understand that our national infrastructure system is not working, and that far too many Americans are not working. America’s Building Trades Unions, like the vast majority of Americans today, are right to expect better from their elected officials.

If we are not going to insist upon the most affluent Americans among us to help finance infrastructure investments and move our economy forward, then we must challenge the U.S. Senate to build a bipartisan consensus to end the political gridlock and our infrastructure gridlock. Our members will rightfully hold their elected officials accountable for failure to enact significant infrastructure legislation.

Once again this winter, drivers will be able to track conditions of the roads across the state. The website www.trafficwise.in.gov will be updated during snow events to let drivers know if road conditions are good, fair or difficult. The information will also be available by calling 800-261-ROAD (7623). In addition to the road conditions, visitors to the website will be able to see National Weather Service watches and warnings. Last winter, nearly a half million people logged onto the website to check out road conditions.

The LaPorte District maintains about 5,600 of the state’s 30,000 lane miles of state highways and interstates. INDOT workers pre-treat state roads with anti-icing materials throughout the day to help melt snow and ice as it begins to fall. After snow begins to accumulate, the LaPorte District uses 173 snowplows to begin clearing state highways safely and quickly. A snow route averages 2-3 hours in length, depending on the conditions.

Because every winter storm is unique, INDOT says it implements specific strategies appropriate for the conditions. For example, salt may not be used during a snowstorm with high winds because the salt would act as a magnet for all snow blowing across the roadway. Trucks may only plow roadways during a blizzard, because putting down salt in such a heavy snow event does little to keep the road clear. Salt and anti-icing materials are used before and after blizzards.

It’s also important to recognize that salt only melts snow and ice as long as moisture is present and the temperature is 15 degrees or warmer. INDOT utilizes chemicals to help lower the melting point of salt when it’s necessary.

The biggest impact to safe winter travel begins and ends with driver behavior. Drivers are urged to use caution as snow is cleared from roadways. INDOT asks drivers to keep the following safety tips in mind during any winter weather event.

• ACCELERATE GRADUALLY on ice or snow to avoid slipping and sliding
• DRIVE SLOWLY and carefully to avoid rear-end collisions and sliding on curves
• ALLOW GREATER DISTANCE behind the car ahead; it takes more time to stop on snow and ice.
• BRAKE EARLY, break slowly, never slam on the brakes; if you have anti-lock brakes, press the pedal down firmly and hold it; if you don’t, gently pump the pedal.
• NO CRUISE CONTROL, avoid abrupt steering maneuvers.
• MAINTAIN GOOD VISIBILITY, stay alert.
• GIVE SNOWPLOWS ROOM to operate; don’t tailgate or try to pass.

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Equipment operators compete at the Case Triple Threat Rodeo 2011 at McCann Industries in Bolingbrook, IL

The 2011 Case Triple Threat Rodeo Series pits operators against each other in a competition that involves skill, precision and timing. The “Case cowboys” as they are sometimes referred to, navigate the N Series Loader/Backhoe, Skid Steer Loader and New F Series Wheel Loader in a series of down and dirty obstacle courses.

The final showdown will be at the North American Case Triple Threat Rodeo Championship in Las Vegas where five finalists will compete for a New Ram 2500 Crew Cab during the World of Concrete trade show.–by Tina Grady Barbaccia