PCCA Journal 2nd Quarter 2010

The Official Publication of the Power & Communication Contractors Association 2nd Quarter 2010 PCCA 2010: More Than the Magic A Peaceful Transfer of Power: Outgoing President Ron Tagliapietra and Incoming President Kevin Mason

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FMI Corporation is the premier investment banking and management consulting firm serving the worldwide engineering and construction industry. For more than 55 years, FMI has built a reputation for assisting our clients in the creation and realization of value in their firms. MERGERS & ACQUISITIONS | FINANCIAL ADVISORY SERVICES FMI is pleased to have served as an exclusive financial advisor in the following transactions: For more information, visit our website at www.fminet.com, or contact: W. Christopher Daum at 919.785.9264 / cdaum@fminet.com *Represented by FMI Riggs Distler & Company, Inc.* Cherry Hill, NJ has been acquired by Thirau, LLC a subsidiary of CVTech Group, Inc. Drummondville, Québec Engineering Associates, Inc.* and its affiliate EA Technical Services, Inc.* Alpharetta, GA were acquired by Quanta Services, Inc. Houston, Texas

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2nd Quarter 2010 President Kevin Mason ElectriCom, Inc. President-Elect Larry Libla W & L Constuction 1st Vice President Tommy Muse Aubrey Silvey Enterprises, Inc. 2nd Vice President Glen Amerine Amerine Utilities Construction, Inc. Treasurer Steve Sellenriek Sellenriek Construction Secretary Timothy D. Killoren North States Officer Directors Official Publication of the Power & Communication Contractors Association Board of Directors David Aubrey Okay Construction Tony Briggs Vermeer Manufacturing Ed Campbell Henkels & McCoy, Inc. James Dillahunty Henkels & McCoy, Inc. John Fluharty Mears Group, Inc. Herb Fluharty Mears Group, Inc. Matthew Gabrielse Gabe’s Construction Co., Inc. Jerrod Henschel Michels Corporation Dan Levac Preformed Line Products Todd Mix ElectriCom, Inc. Todd Myers Kenneth G. Myers Construction Robert Orr Sherman & Reilly, Inc. Larry Pribyl MP Nexlevel, LLC Brad Radichel Condux International Ron Tagliapietra Michels Corporation Matt Trawick Trawick Construction Co., Inc. Bryan Westerman MasTec, Inc. Publication Staff Publisher Timothy Wagner twagner@pccaweb.org Associate Publisher Cheryl Stratos stratosc@pccaweb.org Editor Michael Ancell mancell@pccaweb.org Advertising Sales Manager Victoria Geis vgeis@pccaweb.org PCCA 2010: More Than the Magic 17 More than 350 PCCA members, family, and friends made the magical journey to Orlando, Fla., in March for the 65th Annual PCCA Convention to develop their professional skills, cultivate relationships in the industry, and learn more about power and communication construction—what’s happening now, what’s coming down the road, and what the long-term looks like. An Upside to the Downturn 27 By Andy Patron Because people are your most valuable asset, this slow-down time offers you the best opportunity to put your limited resources to work, learning. Invest in your people now to manage risk today and make them more valuable as you rebound in the coming months. News Briefs 7 RDUP News 10 Safety News 15 PCCA Mid-Year Preview 34 PCCA Member News 39 Industry Calendar 40 Advertiser Index 40

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PCCA Journal|2nd Quarter 2010 7 News Briefs FCC Survey Finds That 93 Million Americans Are Disconnected from Broadband Opportunities At the Brookings Institution on February 23, the Federal Communications Commission (FCC) released its National Broadband Plan Consumer Survey, Broadband Adoption and Use in America, which found that affordability and lack of digital skills are the main reasons why 93 million Americans— one-third of the country—are not connected to high-speed internet at home. “We need to tackle the challenge of connecting 93 million Americans to our broadband future,” said FCC Chairman Julius Genachowski. “In the 21st century, a digital divide is an opportunity divide. To bolster American competitiveness abroad and create the jobs of the future here at home, we need to make sure that all Americans have the skills and means to fully participate in the digital economy.” On March 17, the FCC delivered a National Broadband Plan to Congress that details a strategy for connecting the country to affordable, world-class broadband. “This will be a strategy for U.S. global leadership in high-speed internet to create jobs and spur economic growth; to unleash new waves of innovation and investment; and to improve education, health care, energy efficiency, public safety, and the vibrancy of our democracy,” the FCC said. As part of the plan, the FCC conducted a national random digit-dial survey of adults in October and November 2009 to assess America’s attitudes toward broadband. The survey found that 35 percent of adult Americans do not have high-speed internet connections at home. The survey identified three main barriers to adoption: affordability, digital literacy, and relevance. NTCA Says National Broadband Plan May Not Incent Broadband Deployment The National Telecommunications Cooperative Association (NTCA) in March hailed the FCC and the Broadband Task Force for their significant work on the National Broadband Plan, particularly on portions of the plan that focus on reforming the federal Universal Service Fund (USF). However, the group said other aspects of the plan may not incent broadband deployment in rural America and must be addressed. NTCA represents locally owned and controlled telecommunications cooperatives and commercial companies in rural America. NTCA supports targeting future USF support through the proposed Connect America Fund (CAF) to areas of the nation that cannot support broadband deployment by a single provider without USF support, a move that appears conceptually consistent with NTCA’s own broadband plan. “The plan takes a critical first step toward making universal broadband a reality for every American by recognizing the integral role of USF reform in ensuring a viable broadband infrastructure for the future,” said NTCA CEO Michael E. Brunner. “But to truly achieve the goal of universal broadband, the plan must accurately account for all of the costs associated with providing high-quality, affordable broadband to rural and remote areas throughout the country. Put simply, the plan fails to do this right now.” Of particular concern to NTCA are the plan’s current failure to allow rural broadband providers to adequately recover lawful costs related to universal service and intercarrier compensation, failure to account for vital costs associated with carrier of last resort obligations, and the recommendation to eliminate rate-of-return regulation for all carriers regardless of economies of scope and size. “Collectively, these aspects of the plan would discourage rural investment and would make it unlikely that affordable broadband services could be further deployed and maintained in many high-cost rural areas,” Brunner said. News Briefs continued on page 8

PCCA Journal|2nd Quarter 2010 8 Hundreds of small independent telecoms, broadband service providers, municipalities, and cable television companies have brought gigabit-enabled, allfiber service to a total of more than 1.4 million North American homes (about a quarter of all fiber to the home connections on the continent), according to a report released in April by the Fiber-to-the-Home (FTTH) Council. The study found that all-fiber networks are now available to 16 percent of homes in North America, with 5.8 million homes now receiving television, high-speed internet, and/or phone service over these networks. While a large portion of the FTTH deployment thus far has been due to Verizon’s $23 billion investment in overbuilding its wireline service in many areas, the report noted that FTTH is now being deployed by more than 750 service providers across North America, with most of those being small, independent telephone companies that are replacing their copper lines with end-to-end fiber to ensure their future competitiveness as broadband providers. The study also found that more than 65 percent of small independent telephone companies that have not upgraded to FTTH said they would very likely do so in the future, with another 11 percent saying they were somewhat likely. More than 85 percent of those that have already deployed FTTH said they would be adding more direct fiber connections going forward. “With Verizon approaching the end of its initial FiOS expansion, we are seeing a lot of small local exchange carriers in the U.S. who are ready to pick up the slack, along with some cable TV companies deploying RFoG and some larger Canadian companies going FTTH,” said FTTH Council President Joe Savage. Savage said he is delighted that Google’s plan to build gigabit FTTH networks in several cities has raised awareness of how many communities want superfast connections. “But our survey results show that many communities aren’t waiting and are instead taking matters into their own hands, sometimes through their local telephone or cable companies and in some cases by operating their own FTTH network as a public utility,” he said. Survey: Hundreds of Local Telecoms Already Upgrading to Gigabit-Enabled Fiber Networks Despite slowdowns and spending cuts in many industries, overall spending by all U.S. businesses on wired and cellular calling is forecasted to exhibit modest growth over the next five years, according to a new market research report from Insight Research. The study predicts that cellular calling will account for nearly 44 percent of the U.S. corporate phone bill for telecommunication services in 2010 and is the only enterprise market segment showing substantial growth. Insight’s newly released market analysis report, Telecom Services in Vertical Markets, 2009-2014, reveals that wireless service revenues are expected to grow at a compounded rate of nearly 18.4 percent annually from 2009 to 2014, while growth in wired services remains essentially flat. The biggest spenders on cellular services will come from four market segments: construction; financial, insurance, and real estate; professional business services; and transportation. The study analyzed 14 vertical industries categorized by the NAICS and focused on corporate spending for wireline and wireless telecommunications services in each of the 14 industries. “The year 2009 was all about cutbacks and retrenchment in every industry sector we examined,” Insight President Robert Rosenberg said. “However, it is continued demand for wireless services that will keep the telecom industry in the black over the next five years, and that demand is going to be uneven across the various business sectors.” U.S. Business Telecommunications Spending Expected to Grow News Briefs Continued from page 7

PCCA Journal|2nd Quarter 2010 9 Commerce Department Announces Broadband Funding U.S. Commerce Secretary Gary Locke on March 2 announced 23 grants that the agency said will help bridge the technological divide, boost economic growth, create jobs, and improve education and health care cross the country. The grants, totaling more than $160 million, will increase broadband access and adoption in 17 states and Puerto Rico. “In a globalized 21st century economy, when you don’t have regular access to the internet, you don’t have access to all the educational and employment opportunities it provides,” Locke said. “Fast, reliable internet can help keep communities safer, open doors for small businesses, and provide job training and skills to more Americans.” The Department of Commerce’s National Telecommunications and Information Administration’s Broadband Technology Opportunities Program provides grants to support the deployment of broadband infrastructure, enhance and expand public computer centers, and encourage sustainable adoption of broadband service. A list of grant recipients is at www.ntia.doc.gov or by calling Mike Ancell at PCCA. www.aevenia.com • 218.284.9500 3030 24th Ave So. Moorhead, MN 56560 We are Aevenia, Inc., a premier energy and electrical construction company. We offer a powerful bundle of services and back it up with 40 years in the energy and electrical construction industry. Every day, we show our customers what it’s like to do business where trust, integrity, efficiency and quality are principal values. We are Aevenia. The way energy moves. TRANSMISSION & DISTRIBUTION • DATA COMMUNICATIONS RENEWABLES • SUBSTATIONS • URBAN & RURAL TELECOM POWER PLOWING & TRENCHING • ELECTRICAL CONTRACTING VISIT US AT BOOTH #7020 DURING WINDPOWER 2010 CALL TO SCHEDULE YOUR MEETING TODAY Based on a recommendation from the Manassas Utilities Commission, the Manassas City Council voted to shut down its broadband over powerline (BPL) internet service in July. Overall, BPL served a small customer base of about 520 residential and business users, who were advised to find a new broadband service provider. Although once touted as “the most successful BPL deployment in the nation,” the city finally decided to cut its losses and get out of the business for good. Despite its early promise, Manassas’ BPL service not only caused interference with licensed ham radio operators, but it was also a financial drain. The city said that the service was losing $166,000 annually. Manassas Retires Its BPL Internet Service

PCCA Journal|2nd Quarter 2010 10 In announcements in February and March, Agriculture Secretary Tom Vilsack announced the selection of 33 broadband infrastructure projects to give rural residents access to improved economic and educational opportunities. Funding for the projects is being provided through the American Recovery and Reinvestment Act. Funding of individual recipients is contingent upon their meeting the terms of the loan, grant, or loan/ grant agreement. Alaska, Supervision Inc., The Farther and Faster Project: $174,680 grant and $43,671 private investment to provide last-mile cable to deliver broadband capability in Tanana. American Samoa, American Samoa Telecommunications Authority, Broadband Linking the American Samoa Territory Project: $10 million loan, $81.034 million grant, and $4.462 million private investment to replace legacy copper infrastructure with a fiber optic network that will link the main islands of American Samoa. California, Ponderosa Cablevision, Millerton Project: $1.926 million loan and $1.926 million grant to provide fiber-to-the-premises (FTTP) in a 31-square-mile area adjacent to Ponderosa’s current service territory. Colorado, Wiggins Telephone Association, WeldonaOrchard FTTP Project: $2.168 million loan and $2.159 million grant to provide FTTP in the Weldona-Goodrich-Orchard area. Georgia, Flint Cable TV, Flint Digital Wave Project: $4.095 million loan and $4.095 million to provide a Hybrid Fiber Coaxial (HFC) network to homes in underserved areas central Georgia. Idaho, Coeur d’Alene Tribe, Coeur d’Alene Reservation FTTH Project: $6.142 million loan and $6.142 million grant to provide a FTTH broadband system in northern Idaho. Indiana, Sunman Telecommunications, 700MHz WiMAX Wireless Broadband Plan Project: $5.694 million loan and $5.694 million grant to provide needed broadband services in rural communities of Indiana. Indiana, Smithville Telephone Company, Inc.: $37.729 million loan to provide broadband service. Iowa, Southeast Iowa Rural Wireless Broadband: $3.836 million loan to provide internet services to 80 rural communities using proven wireless technology. Kentucky, Mountain Rural Telephone Cooperative Corporation ILEC Broadband: $39.843 million loan and $38.281 million grant to provide fiber to Morgan, Menifee, Wolfe, and Elliott counties. Louisiana, Allen’s Cable FTTP Broadband Network Extension: $3.584 million loan and $3.513 million grant to extend fiber into rural areas of three South Louisiana parishes. Louisiana, LBH, LLC, Rural Broadband Powered by Fiber: $16.693 million loan and $16.691 million grant to expand existing broadband into rural areas around Moss Bluff, Oakdale, and Vinton. Kansas and Oklahoma, Totah Communications, Inc., the Totah Broadband Expansion Project: $4.852 million loan, $3.660 million grant, and $2.1 million private investment to upgrade existing copper-fed DSL nodes to fiber-fed DSL nodes and install additional fiber-fed DSL nodes throughout the service area. Michigan, Southwest Michigan Communications, Paw Paw and Antwerp, MI FTTP Project: $4.165 million loan and $4.165 million grant to provide advanced broadband services in the rural Paw Paw area. Minnesota, Halstad Telephone Company, the HTC Minnesota Exchanges FTTP Project: $3.277 million loan and $3.277 million grant to provide FTTP broadband in Norman and Polk Counties. Minnesota, Southwest Minnesota Broadband Group: $6.35 million loan and $6.35 million grant to provide service to eight rural communities throughout southwestern Minnesota. Mississippi, Bay Springs Telephone Co., Bay Springs Broadband Initiatives Project: $4.304 million loan and $4.135 million grant to expand advanced DSL broadband services to unserved and underserved areas in Jasper, Jones, Rankin, Scott, and Smith Counties. Agriculture Department Announces 33 Rural Broadband Projects RDUP News

PCCA Journal|2nd Quarter 2010 11 Missouri, Unionville, Missouri FTTP Project: $5.140 million loan and $5.14 million grant to provide broadband services in the Unionville area. New Mexico, Pueblo de San Ildefonso, TewaCom Broadband Initiative, Phase 1-Upper Rio Grande Valley Project: $632,225 loan and $632,225 grant to expand service. New Mexico, Penasco Valley Telephone Cooperative Inc., the Penasco Valley Telephone Incumbent Local Exchange Carrier Project: $4.818 million loan and $4.77 million grant to provide high-speed broadband to unserved areas. New Mexico, Western New Mexico Telephone Company, Broadband Infrastructure Project: $11.516 million grant to provide last-mile broadband services throughout western New Mexico. New Mexico, Baca Valley Telephone Company, Inc.: $1.651 million loan and $1.586 million grant to expand fiber optics to DSL nodes in northeastern New Mexico. North Dakota, Halstad Telephone Company, the HTC Hillsboro North Dakota Town Broadband Project: $246,500 loan, $246,500 grant, and $7,000 private investment to increase broadband capability in Hillsboro. Ohio, Wabash Mutual Telephone Co., Fort Recovery Area FTTH Project: $2.201 million loan and $2.174 million grant to provide an optical fiber network in the region. Ohio, Intelliwave, the Athens, Fairfield, and Pickaway County Ohio Rural Broadband Initiative Project: $1.162 million loan and $1.116 million grant to provide affordable wireless broadband and VoIP phone service to underserved rural Ohio communities. Ohio, Benton Ridge Telephone Co., the Broadband Expansion Project - Benton Ridge: $1.611 loan and $1.547 million grant to provide FTTH in the Benton Ridge exchange. Oregon, Canby Telephone Association, Rural Clackamas Co. Service Expansion Project: $248,046 loan and $496,090 grant to provide advanced DSL infrastructure and connectivity to underserved areas of Clackamas County. Oregon, Sandy Broadband Infrastructure Project: $374,548 loan and $374,537 grant to provide broadband service to the underserved rural area of Sandy. Texas, PRIDE Network, Inc., the Texas South Plains Project: $22.720 million loan and $21.829 million grant to provide an FTTP infrastructure in the Texas South Plains region. Texas, PRIDE Network, Inc., the Burkburnett and Iowa Park Project: $12.811 million loan and $6.309 million grant to provide an FTTP infrastructure, with a WiMAX service-extension overlay, in Burkburnett and Iowa Park. Texas, XIT Rural Telephone Cooperative, Inc., the FTTP and Very High Speed DSL2 Combination Application Project: $3.065 million grant and $3.190 million private investment to provide FTTP and fiber-to-the-node advanced DSL technology in Dalhart and Stratford. Texas, Southern Texas Broadband Infrastructure Development and Adoption Project: $40,093,153 loan and $38,520,868 grant to develop a broadband infrastructure in rural communities of the South Texas Plains. West Virginia, Gateway Telecom LLC, West Virginia Last Mile Project: $1.475 million loan and $1.417 million grant to provide a wireless last-mile broadband solution in unserved rural areas of West Virginia. RDUP News continued on page 12

PCCA Journal|2nd Quarter 2010 12 Agriculture Department Announces Rural Electric Projects On March 2, Agriculture Secretary Tom Vilsack announced that 29 rural utilities and cooperatives in 16 states were selected to receive loans and loan guarantees to build and repair more than 5,600 miles of distribution and transmission lines and make system improvements that will benefit more than 55,000 rural customers. The funding is being provided under USDA Rural Development’s Electric Loan Program. It may be used to expand or improve electric service, support renewable energy efforts, and establish energy conservation programs. “Reliable electric service is a key to economic growth and development, and the funding that I am announcing today will help many rural utilities improve service to their customers and owner-members,” Vilsack said. “These investments are a critical part of the Obama administration’s actions to develop the infrastructure and build the economy of rural communities.” Below is a complete list of the borrowers. Funding of each loan recipient is contingent upon the recipient meeting the conditions of the loan agreement. Alabama, Baldwin County Electric Membership Corporation, $42,950,000 Alaska, Kodiak Electric Association, Inc., $10,600,000 Arizona, Mohave Electric Cooperative Inc., $28,075,000 Arkansas, Petit Jean Electric Cooperative Corporation, $10,589,000 Arkansas, Carroll Electric Cooperative Corporation, $43,413,000 Colorado, Morgan County Rural Electric Association, $6,823,000 Georgia, Coastal Electric Membership Corporation, $18,000,000 Georgia, Washington Electric Membership Corporation, $13,346,000 Georgia, Sumter Electric Membership Corporation, $10,000,000 Iowa, Butler County Rural Electric Cooperative, $12,700,000 Iowa, Grundy County Rural Electric Cooperative, $732,000 Minnesota, Lyon-Lincoln Electric Cooperative, $4,483,000 Missouri, White River Valley Electric Cooperative, $51,427,000 Missouri, Farmers Electric Cooperative, $9,500,000 Missouri, Howard Electric Cooperative, $5,249,000 Montana, Ravalli County Electric Cooperative, Inc., $6,100,000 New Mexico, Jemez Mountains Electric Cooperative, Inc., $28,983,000 New Mexico, Farmers’ Electric Cooperative, Inc., $28,101,000 North Carolina, Energy United Electric Membership Corporation, $69,000,000 North Carolina, Halifax Electric Membership Corporation, $6,500,000 North Dakota, Capital Electric Cooperative, Inc., $15,000,000 North Dakota, Northern Plains Electric Cooperative, $17,000,000 North Dakota, Mountrail-Williams Electric Cooperative, $30,000,000 Ohio, North Western Electric Cooperative, $4,750,000 Texas, Karnes Electric Cooperative, Inc., $6,718,000 Texas, Houston County Electric Cooperative, $11,940,000 Texas, Greenbelt Electric Cooperative, Inc., $2,990,000 Texas, Central Texas Electric Cooperative, $34,000,000 Wyoming, Wheatland Rural Electric Association, $4,255,000 RDUP News Continued from page 11

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PCCA Journal|2nd Quarter 2010 15 To help protect worker safety in the power construction industry, OSHA recently published the “Electric Power Generation, Transmission, and Distribution Standard” eTool. This eTool addresses OSHA’s standard and explains preventive measures for protecting workers’ safety and health, such as providing personal protective equipment, using lockout/ tagout procedures to prevent startup of energized equipment, and following safety requirements when working on or near power lines. OSHA’s eTools are stand-alone, interactive web-based training tools on topics that include modules for answering questions and providing advice on how OSHA regulations apply to users’ worksites. Workers in the electric power industry are potentially exposed to a variety of serious hazards, such as arc flashes, electric shock, falls, and thermal burn hazards that can cause injury and death. This eTool seeks to inform employers of their obligations to develop the appropriate hazard prevention and control methodologies designed to prevent workplace injuries and illnesses. Employers are required to implement the safe work practices and worker training requirements of OSHA’s Electric Power Generation, Transmission and Distribution Standard, 29 CFR 1910.269. The eTool also informs workers engaged in the generation, transmission, and distribution of electric power on the steps their employers must implement in order to provide them with a safe and healthful work environment. Not all the requirements of 29 CFR 1910.269 are covered, however. Sections of the eTool include Generation vs. Transmission and Distribution, Medical Services and First Aid, Hazard Assessment and Job Briefing, Energized vs. Deenergized Work, Hazardous Energy Control, Grounding for Employee Protection, Personal Protective Equipment, Insulating Protective Equipment, Enclosed Spaces and Working Underground, Overhead Line Work, Illustrated Glossary, and Glossary of Terms. Find the eTool at www.osha.gov/ SLTC/etools/electric_power/index. html, or just type “electric etool” in the search box at www.osha.gov and it will be the first option. Safety News OSHA Unveils eTool for the Electric Power Industry OSHA Levies Heavy Whistleblower Penalty The U.S. Department of Labor’s Occupational Safety and Health Administration has ordered e-Smart Technologies Inc. to pay back wages with interest and approximately $600,000 in compensatory damages to a California worker who was discharged after raising concerns about misinformation contained in a draft public filing. OSHA also ordered the company to reinstate the whistleblower to his former position. “It is vital that employees be able to raise fraud concerns to their employers without fear of retaliation,” said Assistant Secretary of Labor for OSHA Dr. David Michaels. “This order reaffirms both the right of employees to raise concerns regarding violations of Securities and Exchange Commission rules and the Labor Department’s commitment to protecting that right.” The action resulted from a whistleblower investigation conducted by OSHA’s regional office in San Francisco under the whistleblower protection provisions of the Sarbanes-Oxley Act of 2002. The investigation substantiated the employee’s complaint that his job duties were systematically removed and his paychecks were delayed and ultimately stopped after he questioned the accuracy of several statements made in the company’s Securities and Exchange Commission filings. In addition to requiring e-Smart Technologies to fairly compensate and rehire the whistleblower, OSHA’s order instructs the company to provide a neutral reference, expunge his personnel file of any reference to his exercise of rights under the Sarbanes-Oxley Act, and post a notice to employees outlining whistleblower protections. Harvick Takes 811 to Victory Lane During the April 25 NASCAR Sprint Cup race at Talladega, Kevin Harvick helped celebrate National Safe Digging month by sporting the “Call 811” logo on the deck lid and rocker panels of his No. 29 car to help educate fans about the importance of following the proper safety procedures when digging. As PCCA members well know, a quick call to 811 can help avoid damage to underground utilities, which can cause injuries, environmental incidents, and disruption of services. Not only did Harvick deliver this important message, but he also raced his Shell-Pennzoil Chevrolet to victory lane and celebrated his first points win of the season.

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PCCA Journal|2nd Quarter 2010 17 More than 350 PCCA members, family, and friends made the magical journey to Orlando, Fla., in March for the 65th Annual PCCA Convention at Disney’s Contemporary Resort. They explored the parks, rode the rides, and whacked golf balls all around the Magic Kingdom. And while the looks on the kids’ faces and the memories will last a lifetime, the meeting was about much more than some thrills and some mice. Construction professionals attend PCCA meetings every year to develop their professional skills, cultivate relationships in the industry, and learn more about power and communication construction— what’s happening now, what’s coming down the road, and what the long-term looks like. The Construction Industry Roundtable, with a packed room as always, provided a bit of optimism in these uncertain times, but the message was more mixed as one might expect from a national group with people working not just in separate regions, but in separate niches of the industry as well. The roundtable included reports from Tom Harter of the Association of Communications Engineers, Mark Bridgers and Chris Daum of FMI, and Brad Radichel of Condux, who provided an overview on how PCCA’s manufacturer and supplier members are faring. The wide-ranging discussion that followed included the impact of federal stimulus money on telecom work, the negative effects of the recently passed health care bill, difficulties with Davis-Bacon prevailing wage requirements, the increased demand and cost for fiber and other commodities, and the rate of economic recovery. Skills development at PCCA conventions occurs during the educational sessions, most notably the Young Construction Professionals (YCP) program. The YCP holds a 4-hour session at every PCCA convention and mid-year meeting. In Orlando, participants covered key performance indicators—defining and measuring progress and risk. Convention attendees also turned out in force for sessions on managing a construction company in a tight economy and emerging trends in power, communication, and utility construction. Another valuable learning experience at the convention was the Annual Associates Exhibit, where contractor and associate members discussed jobs, products, and business in a relaxed, low-pressure atmosphere. PCCA 2010 featured two fantastic speakers, both of whom made their audiences think hard about what they believe in, though in very different ways. At the Opening Session, magician Craig Karges wowed the crowd with tricks that just didn’t make sense (and still PCCA 2010: More Than the Magic Continued on page 18 A little Disney magic turned Mickey Mouse into PCCA President Ron Tagliapietra at the Opening Session.

PCCA Journal|2nd Quarter 2010 18 don’t!). At the Annual Prayer Breakfast, Don Piper talked about real belief as he recounted his remarkable story of near death (he was actually pronounced dead by four sets of paramedics) and his amazing recovery. The many serious subjects at PCCA meetings are usually offset by some memorable parties, and this year was exceptional in that regard with an enjoyable marina-side Welcome Reception, the always-wild PCCA Auction (which raised more than $110,000 for PCCA programs), and a hilariously unique final night party at Hollywood Studios. During the final party, PCCA thanked outgoing association President Ron Tagliapietra, Michels Corporation, for his years of service and for hosting such a fantastic convention, and it welcomed new President Kevin Mason of ElectriCom. PCCA also added three new members to its Board of Directors during the convention: Ed Campbell of Henkels & McCoy, Pomona, Calif.; Matthew Gabrielse, Gabe’s Construction Co., Inc., Sheboygan, Wis.; and Jerrod Henschel, Michels Corporation, Brownsville, Wis. 2010-2011 PCCA Officers President Kevin Mason ElectriCom Paoli, Ind. President-Elect Larry Libla W & L Construction Poplar Bluff, Mo. 1st Vice President Tommy Muse Aubrey Silvey Enterprises, Inc. Carrollton, Ga. 2nd Vice President Glen Amerine Amerine Utilities Construction, Inc. Great Bend, Kans. Treasurer Steve Sellenriek Sellenriek Construction, Inc. Jonesburg, Mo. Secretary Timothy Killoren North States Eagle River, Wis. PCCA 2010 Continued from page 17 Left, billed as an “extraordinist,” Craig Karges dazzled the crown with an array of tricks that backed up the claim—extraordinary, indeed. Right, Austin Shanfelter seems hungry, but Janet Duff doesn’t seem to care. Below left, the tacky tourists are delighted to meet new PCCA President-Elect Larry Libla. Bottom right, Kristin Thulin and Scott Wadell at the President’s Welcome Reception.

PCCA Journal|2nd Quarter 2010 19 Top, Tim Wagner (left) and Ron Tagliapietra discuss association business at the Board of Directors meeting, which included (above, from left) Larry Pribyl, Tony Briggs. Robert Orr, Brad Radichel, and Bryan Westerman. Below, whether Andy Patron (left) and Dan Levac are discussing decision-making strategies or resort fashion, Joe Oden (right) and Dan Stephens are surely agreeing with Andy. Bottom, Faustino Reyes (left) and Jim Simpson discuss a pipelaying snag during the YCP session. Above, from left, Jameson Ringger, Kevin Mason, Herb Fluharty, and Robert Carpenter. Guess which one didn’t get the blue shirt/khaki pants memo. Below, Marty Ferguson learns that if Sam, Don, and Dan Stephens give you read, go for it. Bottom, Tim Fisher belts one down the fairway under the watchful eyes of (from left) Bob Breeden, Denis Scharnhorst, and Troy Gipson.

PCCA Journal|2nd Quarter 2010 20 Above, John Howell (left) and Jim Dillahunty discuss utility vehicles during the Annual Associates Exhibit. Top, Jim Simpson (left) and Larry Libla (right) visit with Alec Nations and John Hale in the Deere booth. The Construction Industry Roundtable tackles many serious topics but is not without some lighter moments. Top (from left), Jack Jeffrey, Robert Juarez, Kevin Mason, Steve Sellenriek, Ryan Steinbecker, and Heath Sellenriek. Above (from left) Troy Gipson, Gene Klaasmeyer, Martin Kobs, Joe Boxrucker, John Fluharty, Scot Fluharty, and Mark Kwilinski. Below, the session on managing a company during a tight economy attracted quite a crowd. Bottom, a relaxing moment for (from left) Pamela, Max, Olivia, and Rob Pribyl, Carrie Hoppnen, Nick Anderson, and Sophia and Kelly Pribyl. Below, Faustino Reyes (right) gets the latest information on confined space ventilation from Gary Pelsue.

PCCA Journal|2nd Quarter 2010 21 Above, Martin and Dan Schmoldt keep close tabs on the Disney Gift Basket during the Silent Auction. Top, Auctioneers Michael Whitebread (left) and Charles Cook always lend the association a big hand during the Auction. Above, a group effort from (from left) Kaylee Miller, Michaela Amerine, Pat Amerine, and Jeremy Miller scores the golf package for Grandpa Glen. Below, Mackenzie Fluharty takes a break from her balloon-running duties to pose for a picture with Pops. Below (from left), Colleen and Dave Moore and Patty and Denis Scharnhorst at the Auction Reception. Bottom, the heads-or-tails game was a big hit at the Auction. If your hands are on your head, take a seat!

PCCA Journal|2nd Quarter 2010 22 Above, Gina Nicoli reads from the New Testament during the Annual Prayer Breakfast. Above right, Past President Winston Weaver welcomes friends and colleagues to the breakfast. Above, Don Piper has an amazing story of life and death and a resonant message about the power of faith. Below, PCCA partiers were met at Hollywood Studios by a crush of adoring fans. Bottom, accompanied by security to keep the paparazzi away, Mason Trawick stops to sign a few autographs. Below, Disney’s first couple is thrilled to meet Pat, Kara, Kevin, and Patrick Hunt.

PCCA Journal|2nd Quarter 2010 23 visit our Web site www.condux.com Kids! Kids! Kids! Left, (from left) Christina Radichel, Mary Fowles, and Darlene Radichel are all smiles at the Hollywood Studios party. Top left, Luca Nicoli and Tyler Tagliapietra are looking stylish at Grandpa Tag’s Welcome Reception. Middle left, Roxanne and Cooper Sellenriek play airplane by the marina. Right, the Briggs, Trawick, and Reyes crew enjoys the show. Top right, Abbie Fowles gives somebody a flip; we think it looks like Venice Westover. Middle right, McKayla, Keisha, and Tammy Aubrey strike a pose with a dandy at Hollywood Studios.

PCCA Journal|2nd Quarter 2010 24 Top, PCCA members always get straight, hard-hitting analysis from FMI’s Mark Bridgers. Above, two beautiful smiles and.....Tyler. From left, Candice Bartson, Nicole Dearth, and Tyler Myers. Above, Dixie and Roxanne Sellenriek enjoy the thrill ride and preserve some family dignity while Bob covers up and Heath.....well, we’re not really sure what Heath is doing. Below, PCCA’s new first couple, Debra and Kevin Mason. Bottom, Georgi and Brad Pelsue enjoy the closing night party. Below, Past President Herb Fluharty and his wife, Chris, stay warm during the Hollywood Studios party.

Thank You 2010 Convention Sponsors

PCCA Journal|2nd Quarter 2010 27 An Upside to the Downturn By Andy Patron Because people are your most valuable asset, this slow-down time offers you the best opportunity to put your limited resources to work, learning. Invest in your people now to manage risk today and make them more valuable as you rebound in the coming months. “Our people are our most valuable asset.” Many executives share this view, and most really mean it. However, if you were challenged to prove it, could you? You might try looking at your balance sheet because this is where your company’s assets are listed. Typically, you will see “cash,” “accounts receivable,” “materials,” and “fixed assets,” but probably not “people.” According to the accountants, “people” are not an asset. Your accountant, though, will point you to another financial report: your income statement. There, he or she will show you line items entitled “direct labor” and “salaries” in Operating Expenses, with both categories making up the “people.” The dollars there represent the direct cost associated with having people on your payroll. In addition, many of your other costs exist to provide benefits, supervision, shelter, and communications for your people. After only a little research, you find that the most valuable, yet unbooked asset is really one of your biggest costs! You can see that your people are expensive, but what are you doing to show them how valuable they are? Moreover, are you doing anything to make them more valuable? Many companies have taken a hard look at their financials during this tight economy and have cut costs. They have made the tough decision to slash overhead and reduce headcount by trimming “direct labor.” In other words, they have fired, laid-off, or let some of their people go. Generally, this first round of cuts involved jettisoning the “C” and “D” players, reducing salaries, or asking some staff to work part-time. Many firms now find themselves in an uneasy place, not wanting to let any more people go because they may be needed to do the work the company is chasing. So, a few extra, topnotch people are hanging around the office with little or no work to do. Your “most valuable assets” are costing you cash and not producing revenue. Your choices are A) pay their salaries and hope that the economy will turn around in time or B) terminate them to cut your direct labor costs today. The expedient, default answer for most business owners is option B. It is the logical answer. The math supports it. But if you take only a short-term financial view, you risk losing some of the very people that made your business what it is today. This will change the trajectory of what your business can become in the future. Before you choose option B, consider how much you have already invested in your people. How much money have you spent on the following: time working with them, the equipment and tools Continued on page 28

PCCA Journal|2nd Quarter 2010 28 purchased for them, the shared experiences, and all the coaching and correcting that you and others have invested in them? These employees probably embrace your company culture and live out many of your corporate values, which they have learned over time through blood, sweat, and tears. These “sunk costs” are what make your “most valuable asset” valuable to you. As you wrestle with how to stay in business, consider this “investment” cost. What would it cost you to start all over with new people? Because the start-up cost of new hires will likely be much higher than the start-up costs of the players that you let go, the aggregate cost and time of replacing staff is quite large and can be up to 2.75 times the investment that you made in the old team. The best long-term business decision is option A unless your situation is quite desperate. Now go a step further. If you decide to continue to invest in your experienced team, ask yourself, “What can I do to maximize the investment I have made in these people?” The answer is to continue to develop them and make them even better. Now is strategically the best time to invest in the development of your people. The demographics of our industry are changing, with only a short window of opportunity to prepare. Baby Boomers (born from 1946 to 1964) make up about 45 percent of the workforce and are 77 million strong. While some are delaying retirement plans due to the recession and loss of retirement funds, the ticking clock still poses a problem. Some Boomers are retiring, and many more will as soon as they are able. Generation Xers (born from 1965 to 1980) make up about 40 percent of the workforce within a cohort of only about 49 million people. They are assuming the leadership positions as Boomers retire, but there are not enough of them to fill all the empty seats. Millennials (born from 1981 to 2000ish) make up only about 10 percent of the workforce, but there are more than 73 million of them. As more of them enter the workforce, they will be required to step into leadership roles sooner then any generation before because of the vacancies left by the Boomers as they leave the working world. Most of these Millennials are nowhere near ready for such roles. The current economic downturn provides precious time to execute a transfer of knowledge and expertise from Boomers to Xers and Millennials. This might be the only good thing about the current economic condition (See Exhibit 1 below). There are plenty of internal options for this transfer of experience. Many companies already have mentoring programs, one-on-one and group coaching, rotational programs for “highpotentials,” and special assignments with a seasoned leader. The object is to transfer real-life experience from those with more than 25 years in the business. In most cases, this means from Boomer to Millennial. The upside of this information/experience transfer opportunity is significant. Done correctly, the trauma of management/ownership succession can be minimized, and your business can continue to thrive (or begin to thrive). The fly in the ointment is that most Boomers (and Xers, too) are very busy and do not have the skills to adequately pass their knowledge to the next generation of leaders. Many will try to find a way to make it happen, but most companies need some help. The days of “sink or swim” learning are over. Letting people fail is just too expensive. Your projects are too complex, too costly and the margins are too small to contain any mistakes, politically or financially. There is just too much at stake. You need to provide some expert lessons to transfer knowledge and experience to your future leaders. You need to provide education and training to give them the skills and abilities they need to be more effective and to manage risk so that you can stay in business. Determining the training needs of your people is not an easy task. You could commission a formal competency assessment to determine specific training needs for each individual in the company. This allows decision-makers to target their training dollars and select courses that will give them the biggest return. Without a formal assessment process in place, determining the training-dollar allocation can be hit and miss. Jerry Porras, author of Success Built to Last: Creating a Life That Matters, provides a framework for determining training needs. He contends that if there is something that you like doing AND you are good at, you should do it. The converse is if you do not like doing something and are not good at it, you should avoid it. In theory, this is the road to long-term personal success. Unfortunately, we rarely have that option. There are many tasks that we NEED to do, that we do not like doing and/or are not good at doing. Exhibit 2 takes Porras’ idea and tweaks it to create a matrix that has two axes: “Need” along the vertical and “Skill Level” along the horizontal. The intersections create four An Upside to the Downturn Continued from page 27 Continued on page 30 Exhibit 1 Populations by Generation Boomers Xers Millennials 77 49 73 Current Total Population Millions Current Workforce Population Breakdown 100% = Total Workforce 40% 45% 10% 5% Boomers Xers Millennials Other

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PCCA Journal|2nd Quarter 2010 30 quadrants: 1) Need is high/Skill is low, 2) Need is high/Skill is high, 3) Need is low/Skill is high, and 4) Need is low/Skill is low. This provides a framework for how to focus your people-development thinking. The tasks with high need and low skill level (quadrant 1) should get your first dollars. However, also consider the tasks in other quadrants. Even if your people are good at something, when the cost of failure or loss is high, training is imperative. Now fill in quadrant 1 (See Exhibit 3). Some topics that are common across the industry are pre-bid evaluation, pre-job planning, job start-up, short interval planning, job cost analysis, productivity feedback, change order management, job status review, closeout, and post-construction review. Consider your target audience. One size does not fit all when it comes to effective training. The content should vary by job title. Field staff use different skills and knowledge than project managers. Senior project managers need more business and people management skills than the project managers they manage. The senior team has to deal with broader industry issues than the mid-level managers, so their training focus should be different. The delivery method should vary by job level, also. As you move from field to office, the training methods and content should reflect those changing audiences. For example, meetings management training has a different focus if the audience is a group of superintendents versus senior executives. Although there are some common practices, field staff generally require training examples directly applicable to the field environment or they will not use them. A daily huddle meeting is very different from a quarterly financial review. The training should be industry-specific and practical. The issues that field managers face in construction are very different from those experienced by their peers in manufacturing or technology. For example, generic meetings management training will not be as effective as construction-specific meetings management training designed specifically for field staff. They will more easily relate to the curriculum, see the application, and use it more effectively if they can see how it directly applies to what they do everyday. Choosing the most targeted, focused training programs will extend your training dollar and give you the greatest return. Exhibit 4 helps illustrate this concept. Furthermore, there are market sectors within the construction industry such as heavy civil, specialty, and general contracting, and the development needs of each level within each industry sector can vary widely. Find content and material that speaks to the right level and group to be most effective. After you define the focus of your training, do not waste it on a poor delivery. Invest in a high-quality training and development program. Consider important adult learning characteristics before you decide on who and how to train your people. Some of the characteristics of great learning experiences include: Relevant, real-life, and practical • Good leader/trainer/teacher • Challenging learning environment • Creative, unique, and interactive delivery • All learning styles (visual, auditory, written, kines- • thetic) impact design and delivery; Participants are moved in some way, often to take • certain actions Fun—learning should be fun, especially for adults • Investing in targeted, experiential training is the greatest risk-reducing investment in a tight, competitive market. Determine the highest returns on your training dollars. When the training is strategically An Upside to the Downturn Continued from page 28 The Need/Skill Matrix 1 2 4 3 Need is High Need is Low Low Skill High Skill Exhibit 2 Training Focus 1 2 4 3 Need is High Need is Low Low Skill High Skill Sample Quadrant 1 Items t 1SF #JE &WBMVBUJPO t 1SF +PC 1MBOOJOH t +PC 4UBSU 6Q t 4IPSU *OUFSWBM 1MBOOJOH t +PC $PTU "OBMZTJT t 1SPEVDUJWJUZ 'FFECBDL t $IBOHF 0SEFS .BOBHFNFOU t +PC 4UBUVT 3FWJFX t $MPTFPVU t 1PTU $POTUSVDUJPO 3FWJFX The Need/Skill Matrix &YIJCJU

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