George Pritchard, Formco Foundations, West Jordan, Utah, says it best: “We make money building and pouring concrete not having our guys spend all their time carrying the forms on their backs,” he says. “If you get machines to lift the labor burden then you gain speed, accuracy and happy healthy workers.”
It didn’t take long for Formco to invest in a truck-mounted knuckleboom crane to place their forms. Pritchard knew with the crane lifting the burden off his workers then there would be less injury, less worker’s compensation and less fatigue. “It has more than paid for itself,” he says. “Now we have four cranes that go from jobsite to jobsite.”
Formco built 750-800 residential foundations last year and Pritchard counts the benefits of less labor hours in more than just moving forms. Another heavy labor issue they found a way to ease the burden of is tying rebar. In the past, Formco laborers used a tool called the twisty. It uses a lot of wrist action wrapping and tying the rebar.
The twisty waved a red flag for Pritchard. “In today’s world there are a few necessary evils—OSHA, Worker’s Comp, L&I—that all add burden of cost to your business,” he says. But why would you want to add to those expenses?” In an effort to guard against those necessary evils and save his worker’s wrists, he got rebar guns. “Convenience doesn’t come cheap,” he says. “Rebar wire guns are about $2,500 and with 14 crews and tow to three guns per crew it adds up quick.”
Spending money is hard anytime but especially when times are tough. “Just because the market is down doesn’t mean you shouldn’t spend any money,” says Darren Poore, Ball Brothers, Monroe, Ohio. “If you can improve the way you do something now and it will help your future then why not? You have to keep investing in your company even when times are bad.” Over the past six months, Ball Brothers spent over $240,000 improving their equipment fleet. “It was time, he says.
They had to update their equipment because for Ball Brothers, the equipment is their business. Ball Brothers offers the one stop, turnkey foundation solution: digging, forming footers, pouring walls, waterproofing and backfilling. Overtime they added equipment to diversify their business. Now they own their own trackhoes, loaders, conveyor belts, concrete pumps and aluminum forms. They were one of the first contractors in their area to offer the full list of services; Thanks to the equipment in their fleet.
Cornerstone Foundations, Harrisonburg,Virginia, also found its competitive edge offering the whole foundation package in its area. John Wilson says it was an evolution. By buying equipment, Cornerstone slowly changed from the basic foundation business into a full-service company. “We are cutting edge in our area,” he says. Having an exclusive niche makes it nice for Cornerstone but Wilson still wonders why his competition doesn’t buy into equipment that will make their companies better. “If the equipment is going to support your existing business then why not?” he says.
Cornerstone just purchased big form panels. But they also own their own pump truck, crane, three gravel slingers and excavating equipment. “We couldn’t do what we do without the equipment we have,” Wilson says.
Know Your Market
Some areas only do 4-foot foundations, some do 9-foot walls, while others just do slabs, says Hart. Know if the forms you are buying will do what the market does. Knowing your market helps you know what you need to compete in your area.
Know What Your Customers Want
For Ball Brothers and Cornerstone, they found that their customers (the general contractors) wanted a one-stop shop. General contractors want to deal with the fewest possible people to get the job done. So, if one company can dig, form, pour and waterproof, with one phone call, then that saves the general contractor time and money.
Ask Questions
Brett Richert, Stephens & Smith Construction Company, Lincoln, Nebraska, says when he was getting ready to buy equipment or change things he would visit other people’s operations that were willing to share. “We would travel 200 miles to get where we weren’t considered a threat,” he says. “See others ideas and adapt them for your business. Check out how things are done and how much it costs them.”
Research the Products
Compare and contrast what one machine can do next to another. These contractors say they line up three brands of a type of product they want and go from there comparing capabilities and prices. You can research products online. Most manufacturers have websites that list anything you would ever want to know about a product.
Trust Your Gut
After you have done your homework, you ultimately have to make the decision yourself. “Be prepared to be committed,” Richert says. “But if you feel there is an opportunity then there probably is.”
Issued: June 28, 2007
Page: 10-11
Copyright: Copyright 2007 R.W. Nielsen Company