Concrete Industry in Bankruptcy
MCD 01-31-2009
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I've been following with interest the postings and emails from yellowstone regarding the relationship between SL, Putzmeister, Luchts, and Brundage Bone. I then was hit by the effort in mail of Richard O'Brien to put into public discussion a problem that I have been attempting to address and combat in our local area for years. Here is my sad story. In 1994 I started a small concrete pumping operation with one pump. I started in a very underserved market and business and profit was good, not great, but good. I grew by purchasing 7 or 8 concrete pumps over a 7 year period until I felt the market had most of the pumps it could bear without becoming stressed. I wanted to grow some more so in a two year period I purchased 2 concrete pumping companies at fair market value. With each purchase I called for a meeting, and got it, with all the other concrete pump company owners and told them face to face that I would not cut prices and I would support them at my prices which I gladly shared with everyone. I furthermore said I would never hire their employees because I consider the employee the most valuable asset we have, and the backbone of our organizations. Each time I left a meeting everyone would agree that the typical market pricing was causing trouble and they would no longer cut their prices. ( I was fighting 90.00/hr 1.00/yd 36m competition w no travel ). At the same time I was striving to make a business go in a market that I thought was reaching saturation, my friends at Putzmeister and SL were helping some folks put enough new equipment in our markets to effectively, in one year, add 100% more pumps. The pressure on the industry became incredible. Prices dropped wages skyrocketted,employees were stolen every day.  Yet I still resolved to take the high road, keep prices up train new employees, hands off the employees of others, meet with the new competition along with the old. I did this in a futile attempt to save the industry and my business. I promise I'm coming to the end. The end is I started with one pump, grew to 32 pumps. I started with a great idea in a great industry. I started with the American dream work hard, work long, work honestly, respect others, pay your bills and success will follow. The reality of my situation after 15 years is , I now have 8 concrete pumps, soon to be 3 after I surrender 5 more to SL. I can't pay my bills timely, I have spent my life savings trying to stay above water and do business like I felt it should be done. I avoid creditor calls like a scared child, and my once imminent retirement has been pushed back at least 5 years and my primary retirement income may be social security. I'm not going to put the blame on anyone for my situation. I made decisions to finance, I made decisions to expand, I made decisions to take others at their word, and I can live with my decisions. But, I caution you, our great industry is in crisis due to over production by the manufacturers, too easy financing by the banks, too many non business men with millions of dollars worth of debt, and very little honor in their dealings with others, and a pathetic construction economy. Change now. It's too late for me, but maybe not for you. Thanks Richard O'Brien, thanks Yellowstone. Good luck guys. I'll still be pulling for you all.

Drew AUS 01-31-2009
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Not being from the states makes it difficult to relate 100% , although if this means anything the concrete pumping industry is the same here people smile and agree with you about rates then go and cut your throat , its harsh to say but stuff that dream we work on the same kind of thing . I wish we could all be good honest ppl but at the end of the day the people you see ripping your dollars away are the people who are still there when the smoke settles, its not fair nor is it right it makes me sick the biggest snakes, dishonest pigs are the ones thats come out on top...

Im not one to tell people what to do but if i was in your shoes I would cut the fleet to two pumps ,  i would operate one and have the best operator and two hose men stay, maybe its something to consider perhaps the money you make by selling the pumps you dont have to will set you in good steed at the end of the crysis ..

Good luck mate hope all will be ok!!   


TooTall 01-31-2009
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It's becoming a fairly common story MCD. I worked for a company for several years that I'd planned and hoped to retire from. He has been in business for over 20 years and has been on a pump his whole life working for his Dads pump company. He worked his way up from a Challenge/Titan to 10 Concords over the years and did business the way it should be done. He always got Top dollar, he had well cared for equipment and customers. He took even better care of his operators! Over 18 months of consistent slow down he has sold and lost most of his fleet and is down to 3 booms and 2 line pumps. Even those few dont work much. I had to quit, or "move on" last summer after many months of 20 hours or less each week. It truley breaks my heart to even drive by the yard... It was the Best job I've ever had, He was the kind of Boss that gave you a heads up that things were going south and told us not to turn down any steady work or job offers. I left with his blessing, but would go back to work for him Monday morning if he really needed me!

He will ALWAYS have atleast one pump. Never let em take your last one MCD! Just like I told my old/best boss.. "You can hide one at my house"!


tebequip 01-31-2009
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MCD - As you can see from the many posts. Richard O'brien his a sore spot for us all. I have know Richard for many years. We all bleed with you. TT tells it in comment about his boss and with heart. Your workers will do the same. You will make it because you are doing the right things. Good things happen to good people. It is going to take time. There is still going to be some big hurt. BUT. You all who have worked so hard need to bring the banks, creditors and others to the table. Sit them down. Give the riot act. They can work with you to the bitter end or go down with you. THese guys cannot take anymore debt back on the books in equipment. Please. If you are having these problems contact me. tebequip@aol.com. This is the third recession for me. I do many things for banks, finance companies for equipment and business means. There may be a way. We all need to stick together and talk. Work thru this as an industry. Only look back at things to make better decisions moving forward. Like I tell all. Get the chin up, blinders on. Answer the phone and tell it like it is. Nothing less. If someone wants to play hardball in these times, they will be the ultimate loser. You can work it out guys. We can work it out.

 

 

 

THIS WEEKEND. START BY GETTING EVERY OPERATOR IN YOUR COMPANY, EVERY SINGLE COMPANY YOU KNOW AND EVERY AND ANY PERSON RELATED TO THIS INDUSTRY TO SIGN ON TO THIS SITE IMMEDIATELY. LETS STOP THE TALKING AND DO SOME WALKING AND FIND A WAY. PLEASE DO NOT BLOW THIS OFF BUT GET EVERYONE IN THIS INDUSTRY ON THIS SITE now AS A COMMUNICATION POINT AND LETS COME UP WITH A PLAN. I AM WILLING TO PUT ALL THE IN PUT TOGETHER. MAKE THE TIME AND EFFORT TO TAKE A LEAD ON THIS AND START. BUT YOU ALL NEED TO HELP ME GET EVERYONE WE CAN TO ONE COMMUNICATION POINT NOW!!!!!!!!!!!!! I WILL TALK TO TODD ABOUT THE BEST WAY TO USE THE SITE FOR BETTER OGANIZATION FOR OUR INDUSTRY AND LETS GET GOING TODAY AND NOT KEEP TALKING OR CRYING ABOUT WHAT IS BEHIND US. BE PROACTIVE AND LETS PUSH FORWARD. TODAY!!!!!!!!!!!!!!!!!!!!! YOU CAN JUST PUT YOUR COMMENT IN THIS SITE OR YOU CAN GET EVERYONE YOU KNOWIN THE INDUSTRY AND LETS AT LEAST MAKE AN EFFORT NOW.

 

 

THANKS RICHARD FOR YOUR OPENING THIS UP!!

 

 


tebequip 01-31-2009
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IN my opening comment on the previous post I said Richard OBrien his a sore spot. Should be hit a sore spont in this industry. sorry guys.

Kretch 01-31-2009
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I just responded to the posting from Mr. OBrein and my hopes and wishes go out to all of you who are in this bad situation.  I too am suffering, but more from the continuing tail spin of the economy. 

There is much to be said about the involvement between Luchts/Putz, and Brundage/Putz.  I believe there will be some unpleasant concessions waiting for them in their not too distant future.  I'm know there are few other pump companies out there who weren't offered such sweet deals.

It is unfortunate that the price wars have continued over all these years.  I congradulate those of you who have stuck to your good standards of doing business.  Honesty and good service is all it should take.  The construction industry has been built on getting the best price no matter what.  There is very little loyalty anymore, but in those areas where it works you don't see these prostitutes. 

It is a shame that so many companies have filed for bankruptcy over the past year or so.  And I feel terrible about the fact that it isn't over with yet.  I know in my heart that you guys who are bankrupt, or on the verge of it are not the ones who should close your doors.  It is those who have set the stage that need to go.

Best of luck to you.


Bob 01-31-2009
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It has not even started yet. The future is sad; the innocent will pay for the crimes of the guilty.

My2cents 01-31-2009
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Sorry about your luck,

Dan,

You want to cry about going from 32 machines to eight and maybe 3, you should have thought about t this when you were once my customer and I provided you with a good service at a reasonable price, when you were doing all your foundation work.

Bite off more than you can chew, put a 50 meter concord in the market for a set rate of $650.00, I have no tears for you. You should of left Mark Holloway and Premeir alone and stuck to doing flat work and pouring walls, and you would have made money.

Instead, you fed off of me and destroyed the market, which will take years to get back because of the damage you and butch and terry all did.

I hope you all feel good.


Drew AUS 02-01-2009
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im with tebequipon this look forwardto what you can do not back at what you could have done!!

My2cents , nice kick in the balls !! you really lined it up nice , to be honest thats the kind of thing people dont need to hear in these times no doubt your going ok , i can tell from the attitude , you realy think he needs to hear about the should haves ? Right or wrong who knows if its right, hes paying for it and if its wrong, hes still paying for it, so those kind of posts arnt even worth 2 cents.....

take it any way you like.........

I feel like saying more but i like this site and i dont want to be banned.


My2cents 02-01-2009
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Drew,

I respect your opinion, yet it was the decisions by the unprofessionals that have put the industry where it is. I notice you are an operator, I am just the dumb ass owner that lost 20 years of my hard work because of the idiocy of many. I just hope everyone learns, and when and if it comes back, the s-it does not happen again. Keep getting your paycheck, I am just the dumb ass that chooses if I have to, I give up mine so you can have yours.

When you were ten, I was writing paychecks and to this day have not stopped, yet I have lost much due to the people that think they know it all like everyone here thinks I do.

Time for this Industry to mature and be real, or Fing let it go, there is no money in it, or loyalty like their used to be.

Take it how U want to. Iwas just speaking my mind, and telling the truth.

Can not knock a man for that!

 


Drew AUS 02-01-2009
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Maybe it was a bit harsh! But look at it this way, its a circle ,bob i agree you need to learn from the things you and others have done wether its right or wrong.

The idustry is in real bad times a lot of ppl are or will go broke and a lot of people will never get back into it once they have gone bad in it . So there is a new generation or breed of people who think they can make a dollar in pumping so they finance there arse off and do the same thing as everyone else !

Im not being a smart arse but please tell me how are you going to teach these people to learn from the mistakes they have never seen , its human nature when your father used to give you advise did you ever take it and do exactly what he said or did you go out and make the same mistake as your father made 30 years or so earlyer ( BE HONEST)

I might only be an operator but im not dumb , i do respect that you have been doin it from more years than ive been walking but seriously think about it..


Bob 02-01-2009
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We can't pretend that things are business as usual. We are in a big mess, some of which is our fault. If we ignore how we got here we can never prevent it from happening again. Lots of 'old guard' professional companies are going to fail for no other reason than they were there.

Looking back makes sense; looking forward at this point... I see no light at the end of the tunnel except for the oncoming train.

"Those who cannot remember the past are condemned to repeat it."

George Santayana


ShortStik 02-01-2009
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hey bob

theres no light cause of the bends in the tunnel and the final straight is a long ways away.  all a guy can do is keep his head up and eyes, ears, opinion open.  if there no light at the end,

WHAT'S THE POINT?


My2cents 02-02-2009
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Everyone in life makes a decision, right or wrong, but if you do not learn from your mistakes, u did nothing but waste all time, and that time may cost not only you, but many!

My2cents 02-02-2009
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Bob,

I always said you were a man of vast knowledge. Let's just hope it spreads and sticks for the next generation!


Bob 02-02-2009
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My2cents

I am really not all that sharp.

The only reason I have made it to here is that I have a good memory .

The trick isn't to remember WHAT happened as much as WHY. ;~)