CED

September 2013

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Contractor Connection ("If You Are Helping Me, I Will Buy From You" continued from page 30) few Hitachi machines and a Takeuchi mini-excavator. Once a need is identified, purchasing decisions are based on the features and benefits of the brands, as well as availability and price. They also don't rule out purchasing low-hour used machines. He has no desire to become tied to a single dealer or brand. "I don't want to be all Cat or John Deere," he said. "I don't want to fall in a category. I like to spread it around a little bit." In recent years, the company has favored rubber-tracked mini-excavators over its traditional workhorse machine, the backhoe loader. "The mini-excavators cost less money and are a little easier to run than a rubber-tire backhoe," Gregorio explained. The availability of skilled operators has become a challenge in recent months. "I had a job today where I couldn't finish because the operator wasn't skilled enough to complete the job," he said. The company has trained at least half of the operators on its staff. Others are union-trained. "We need to do a better job of informing people that they can make a good living and get good wages in a lot of different facets of the industry," Gregorio added. He believes that technology could play a part in attracting young people to the industry, yet outside the industry it's not widely known how technical the industry has become. During the recession, Gregorio had to figure out what they could do without, both from an equipment and people standpoint. "I look at it as a learning opportunity," he said. "It's a time to learn and a time to put some things in place to save money and stay competitive." Attention to the bottom line continues even though business has picked up. He keeps a close eye on revenue and costs using HCSS Heavy Job to manage what is going on in the field. Gregorio reports that private investment in commercial construction has been keeping contractors busy. While the market is improved, it's still tight –and with low margins. He wonders if contractors are becoming tired of just scraping by, working to keep the doors opened. Some of his firm's completed projects include the River Oaks Sanitary Sewer Extension and Improvement Project in Fairfax County, Va.; and 4,000 feet of new water service and over 4,800 feet of new sewer service in the South Capital near the stadium. Meeting the Challenges At Anchor, the majority of the maintenance work is conducted in-house, but staffing reductions during the recession and the need for new diagnostics equipment have challenged the construction business. "My mechanics need more training on the new technologies," said Gregorio. Diagnostic equipment required for the Tier-4 Final machines is another problem. He would like dealers to help with training his mechanics. "I know they might not want to share that expertise, because it means less work for them, but everything comes around," said Gregorio. "If you are helping me, I will buy from you." "I have more technology [on machines] than I can use right now," he admitted. And while he recognizes the value of technology, without the right people and training in place, he knows they won't be able to fully reap the benefits of it. "With pricing where it's at, it is difficult to make the investments in everything you need," he added. "Training is lacking," said Gregorio. "Dealers could do a better job of explaining new technology. It is not common knowledge." He would appreciate it if dealers were proactive in holding classes or events to educate customers. "But they have to keep it simple," he added. "Dealers need well trained representatives to price things and tell people about the [machine] technology and explain it in a simple way. "The people that write these programs, they think everybody else has the same knowledge. People using it are afraid of it. They haven't dealt with something that sophisticated. They have to get over being scared to use it." He recommends hands-on training, where participants would work directly with the machine or program, rather than a traditional classroom setting. "They U.S. Construction Spending on Utilities need hands-on opportunities," said Gregorio. June 2012 vs. June 2013, Seasonally Adjusted (Millions of Dollars) He plans a trip to Las Vegas in March 2014 to attend CONEXPO-CON/AGG. He is hoping to June 2012 June 2013 + or learn more about the new technologies that Private Construction are available. Power $72,879 $76,642 +5.2 Public Construction The NUCA Agenda As chairman of the National Utility ContracPower $10,518 $11,523 +9.6 tor's Association, Gregorio is focused on Sewer and waste disposal $20,971 $19,880 -5.2 increasing involvement among his peers, as Water Supply $12,724 $12,705 -.01 well as dealers and suppliers. His first involveSource: U.S. Department of Commerce ment with the organization came in 2004 when he attended a meeting. He found value Power is a bright spot in the utility market this year, compared to last. Public in meeting other contractors, training and construction spending on sewer and water continues to be strained by keeping up with legislative and safety issues. government budget issues. 32 | www.cedmag.com | Construction Equipment Distribution | September 2013 30_Contractor_Feature_KP.indd 32 8/28/13 12:34 PM

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