Just some of my thoughts about the industry, where we are and where we are headed - You are free to print if you want to.
Industry in Turmoil
While the entire construction world reels from the current economic crisis it is the concrete pumping industry that will be hit hardest. Most of this pain is self inflicted. To understand the industry as a whole you need to go to the very beginning. The original pumps were a great idea that did not work well. The pioneers of concrete pumping believed in them and fought day and night with ready mix company's and contractors to prove their value. These were the guys that pumped all day and worked all night repairing their pump so they could go out again the next day. Many of them are now retiring or have passed away. Some of them still remain fighting the good fight but seeing everything they worked for dwindle away. Prices are down, costs are up and work is dwindling.
Concrete Pumps are truly the bad boys of the construction industry. Other equipment such as cranes or bob cats are essential tools needed during the entire construction process. Pumps on the other hand are now just a necessary evil to reduce labor costs on a small part of any project. Customers need them but don't like them. With the exception of large concrete projects such as water treatment plants or highrise buildings pumps are only a very small percentage of the entire job.
Concrete Pumping is one of the few trades that jobsite superintendents even have any control over who they use. All the material is bought by the office, concrete, lumber, steel, and so on. Many small residential builders have no long term pumping agreements. The result is numerous concrete pump salesman descending on jobsite's in search of work. While there are some exceptions (mostly larger projects and companies) no weight is given to the pumping contractors safety program, boom inspections, maintenance programs or training. Getting the job is a matter of being first to call on them or personal relationships with whoever is on the job. More important in this market is Price. Too many pumps, too many manufacturers,
too many poorly training operators. A recipe for disaster.
Clearly Pump Manufacturers have played a key role in the current crisis. Was this done maliciously? Certainly not!. It was a result of construction markets not accepting pumps during their infancy. The makers of pumps could not get any of the normal equipment sales companies to accept them and market their product. To survive they turned to the end users. Deals were made with small pumping contractors to make them an exclusive dealer so they could sell more pumps. As time went on this process became almost incest in nature. The original owners often made deals or promises with key employees to share the wealth and more often then not did not honor their word. Soon these key employees began to go out on their own. They knew they could not buy from the same manufacturer as their former employee if they were in direct competition so they sought out other brands. As time marched on two companies emerged as the dominant force. Markets however always support the underdog. Market saturation by the bigger companies resulted in some of their key personnel seeking other means to grow in the industry, They sought and found overseas companies to look at the US as potential market and then the process began all over again. Times were good. Money seemed to be everywhere. Anyone could buy a concrete pump and get rich. Operators who had a rich father in law or a rich daddy got into the business. Contractors sat back and laughed. More pumps, more manufactures, more operators, supply and demand - and the prices kept declining. Manufacturers were now faced with a saturated market. The long held mantra of putting operators in business was stagnating. Quickly they began to target concrete contractors in the residential market. Pumps were everywhere, money was cheap - it was easy to convince small concrete contractors that instead of paying a pumping contractor, get your own pump and put the profit in your own pocket. Good things never last forever and soon this market was tapped out. Next they focused on Ready Mix Producers. Why not provide a pump with your concrete and put the profit in your own pocket on all aspects of concrete.
Contractors began to laugh more! Ready mix providers were soon hit hard with the reality that contractors would force them to discount their pumping or they would not buy their concrete. Prices continue to fall. The long mainstay of the pumping industry "The Pumping Contractor" was dropping his prices to compete with the concrete contractor who now had their own pump and realized they could get extra money by renting it out to other contractors when they did not need it. The newest threat of concrete suppliers now bidding against pumping contractors has put more downward pressure on price. Feeding on the natural greed of mankind - concrete pump sellers would convince people to buy pumps to take advantage of tax incentives and how they could have extra income for very little work. Then knew a lot of the these people would not survive but in their own greed for a commission they did not care.
In the middle of all this happening - pumps have become more reliable but also a lot more complicated. They reach farther and pump faster. The government has implemented a lot of new rules and regulations that govern driving and soon will be overseeing the pumping industry. Power line accidents, driving accidents, tip overs, hose whippings and numerous other incidents have inundated the industry. All too often the owners of pumps have made the business decision if you can drive you can pump. With unemployment reaching all time highs - many owners whose prices have declined are now employing less experienced operators at lower pay.
The insidious are now raising their ugly heads. As companies struggle and search for ways to survive there are among us the true predators. Those with money that use their power to spread rumors or half truths to accelerate the demise of all companies. These are the people that have money from other business sources or even from a rich daddy. They wait in the wings slavering with anticipation as each company slowly fails. They have no compassion for the lives they destroy on the lower end of the pumping industry - the mainstay - The Operators. They want all companies to fail so they can move in a control the market with no regard for the lives of their employees. Many who read this will immediately think about certain large companies - you could not be more wrong. The companies that come to mind have had a long held belief in their employees and have always provided them with retirement and health care benefits. Great pay and benefits. Those in the mists are waiting to take over and will dictate what the pay will be and who will work. If they are successful they will emerge in the coming years and all who love this industry and pumping will be forced to work at whatever they will pay you.
Industry in Turmoil - How can it be saved? The Operators, Mechanics, Office Staff and Sales Staff have to know and realize what is going on. It will require an unswerving loyalty to your employer with the goal of making them a survivor! It means going to work on time, always working safely, driving as if your life depends on it every day. Picking up the gasket laying in the yard. Do things that will make the contractor you are working for remember you and your company. At the end of the day go shake the guys on the jobs hands and thank them for letting you do their job. Never talk bad about the company you work for, your competition, the ready mix company, anything. Everything you say should be positive. Always lead. Train the rest to be the best.
It does not matter if you are Union or Non Union. The one great thing most of us have had in common during the evolution of the industry is that we have all worked for owners that were operators themselves at one time. These owners have been there and done that. Does not matter if you like or dislike them. What we are faced with in the future are owners whose daddy bought them the company or owners like large corporations. Once the shift begins to the uber rich and daddys boys we will all go the way of the dinosaur. The only hope to survive is in the hands of the operators. By our very nature we are non conformists and don't play well with others. We have a mean streak of independence. None of us will fit in well with the new corporate suit groups that may soon rule us. The salvation of the industry we all love is in our hands. No more fighting, no complaining, keep a clean pump, put in the extra time to help the company survive. Donate a few hours over the weekend to really shine your pump! Keep clamps and hoses clean. Do everything as if it belongs to you. The alternatives are instead of cleaning your pump you will be boot licking the uber rich and daddys boys.
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