Construction Transportation Delays Effect Everyone!

November 4, 2003

Transportation Delays Effect Contractors by :
Job delays, Job breakdowns, Job start dates.
Operating without the proper equipment because it can't get to your job in time.
Trying to find something else to do next until the equipment or materials arrive.
Shutting the job down when only because of delays.
Moving equipment between jobs.
Unable to access toll roads and loads having to travel further and longer.
Must absorb cost or pass costs on but in the end, someone pays….the consumer?

Employees: Loss of work throughout the year due to job delays and start-ups.

Local 12: Loss of Operator Hours throughout the year.

Industry Fund: Hours down, an unable to work because equipment not on site and ready to go.

Economy: The economy is impacted negatively because operator's incomes are down because equipment or materials were not on site in a timely manner.

Rental Companies: Loss of Rentals and annual revenue.
Operators losing work

Dirt Haulers: Bidding jobs and after job begins, city or agency forces long route - costs just went up.
Trucks taking longer routes are burning more fuel.
Trucks taking longer routes cause considerably more air pollution, maintenance, delays, and costs

Fuel Suppliers: If the Contractor is not working his equipment when he really could be the fuel supplier is not selling the fuel and oil.
When the Contractor is not able to work his equipment throughout the year, this means less servicing, and less revenue.

Tire Suppliers: When the Contractor, Rental Companies and the Dealers aren't working they are not wearing out tires.
If equipment isn't working that means tires aren't being used or repairs being made. The Boom trucks they have invested in are not working nor are their employees.
Their annual revenue is impacted considerably.

Dealers Parts: When the Contractor or Rental Companies are working, their machines are breaking down, hoses blowing, daily repair and maintenance are not being done, and the dealers are feel this negative financial impact.

Dealers: When the Contractor or Rental Companies are not working to their full potential and wearing out equipment or making money they're not buying new or used equipment to add to their fleet.

Material Suppliers: When the Contractor is not working when he could be, Material Suppliers are not selling materials to the jobsites. This also affects their employees.

Crane Industry: The Crane Industry, the employees, the vendors, and suppliers all suffer the same economically.

Financial Companies: If the Contractor and Rental Companies are not working to their full potential, they're not purchasing new or used equipment.

Insurance Companies: If the Contractor or Rental Companies aren't working they do not collect premiums.

Attorneys: When Contractors, Rental Companies, and suppliers are not working, the Lawyers aren't working.

Accountants: If the Contractors or Rental Companies are not working, then Accountants are not either and will be feeling the impact we well.

Auction Companies: When the Contractor or Rental Companies aren't working, they are not likely to be buying equipment that can not be kept busy because of the transportation delays.

Crushing Industry: When the Contractors are not working their Industry is affected.
Their transportation costs increase because of delays.

Crime: Vandalism will be more likely to occur when equipment is sitting on jobsites, because of delays in moving it promptly.
When vandalism is occurring, insurance rates are increasing.

Misc Vendors: If the Industry is being delayed, so is their business.

Truck Dealers: Contractors and Rental Companies are not purchasing the pick-ups or vehicles they normally would if they were more profitable.

AQMD: Shorter routes mean less pollution.
Less idle time means less pollution.

Trade Associations: When Contractors, Rental Companies, Suppliers, Vendors and Professional members revenues are down their associations also feeling the affects, and revenues are down.

State of Calif.: If Companies and Employees aren't working, taxes aren't being collected, and the monies are not being spent, which impacts the overall economy.

Where could the Economy be today if our Industry was not delayed?

Sincerely,

Gregory D. Dineen
Industry Transportation Consultant