The Official Publication of the Power & Communication Contractors Association 2nd Quarter 2014 Inside • Utility Construction Market Report • OSHA Revises Standards for Power Work • Program Set for 2014 PCCA Mid-Year Meeting PCCA Convention Makes Big Splash in St. Thomas
JohnDeere.com/backhoes YOUR EXPERTISE. ATTACHED. Building your business together. The way John Deere sees it, anyone who spends 10 hours a day in a backhoe must have ideas on saving time and money. So when guys like you said, “Give us a quicker way to switch attachments on all your models”, we heard you. Our Worksite Pro™ loader quick-coupler is now available on every K-Series Backhoe. At the push of a button, you can swap out buckets, brooms, and forks —without leaving your seat and regardless of control confguration. Plus, it accommodates both Deere and non-Deere attachments. For details, visit your dealer or our website.
Vermeer, the Vermeer logo and Equipped to Do More are trademarks of Vermeer Manufacturing Company in the U.S. and/or other countries. © 2014 Vermeer Corporation.All Rights Reserved. EQUIPPEDTODOMORE.com
Where vision meets value. Chris Daum | 919.285.9264 | CDaum@fminet.com www.fminet.com FMI Capital Advisors is a leading Investment Bank serving the Engineering and Construction industry. Our unique industry focus, serving a broad range of industry sub-sectors, enables us to provide our clients with valuable insight and advice. With over 600 completed transactions, FMI combines advisor expertise with industry-focused knowledge and relationships to consistently demonstrate vision in order to achieve value for clients. Industry Focus. Powerful Results. has acquired selected assets of has been acquired by has been acquired by
2nd Quarter 2014 Officer Directors Official Publication of the Power & Communication Contractors Association Board of Directors Publication Staff 1908 Mt. Vernon Avenue, 2nd Floor Alexandria, Virginia 22301 (800) 542-PCCA •www.pccaweb.org ©2014 Power & Communication Contractors Association Garrett Akin Brooks Construction Craig Amerine Amerine Utilities Construction, Inc. Glen Amerine Amerine Utilities Construction, Inc. Robert Breeden ElectriCom, Inc. Ed Campbell Henkels & McCoy, Inc. Marty Ferguson FS3, Inc. John Fluharty Mears Group, Inc. Matthew Gabrielse Gabe’s Construction Co., Inc. John Hale John Deere Jerrod Henschel Michels Corporation John Higgins MasTec North America, Inc. Chase Lapcinski Push, Inc. Dan Levac Preformed Line Products Tommy Muse Aubrey Silvey Enterprises, Inc. Rob Pribyl MP Nexlevel, LLC Jameson Ringger NESCO, LLC Heath Sellenriek Sellenriek Construction Don Stephens Tjader & Highstrom Lindsley Thulin Michels Corporation Publisher TimothyWagner Editor Michael Ancell Advertising Sales Stacy Bowdring Advertising Sales Dana Gilbertson Photography Steven Purcell Information Technology Greg Smela Accounting James Wagner President Steve Sellenriek Sellenriek Construction President-Elect Timothy D. Killoren TelCom Construction 1st Vice President Todd Myers Kenneth G. Myers Construction 2nd Vice President James Dillahunty Henkels & McCoy, Inc. Treasurer Larry Pribyl MP Nexlevel, LLC Secretary David Aubrey Okay Construction “Good Times, Bad Times, You Know I’ve Had My Share...” 13 By Mark Bridgers and Nate Scott In the immortal words of Led Zeppelin, the overall utility construction market has seen both good and bad times. The current market is perhaps the best in 60 years, and many utility contractors are expressing their optimism that this market will continue for some time. The optimism is particularly strong in the distribution and transmission pipeline construction markets, which are exceptionally healthy, while electric distribution is also expected to yield growth. Water and sewer are least attractive, and telecom, while positive, is not as robust as other markets. PCCA Makes Big Splash in St. Thomas 25 Maybe it was the improving economy, or it could have been the outstanding educational program, the elegant resort, or the desire to see a bunch of old friends and colleagues. Certainly, a lot of folks were looking to escape the brutal winter that gripped much of the nation. But whatever the reason, the fact remains that 368 PCCA members and their families traveled to St. Thomas in March for the 69th Annual PCCA Convention. It was the highest attendance at a PCCA meeting since 2001. Safety Watch 9 Telecom News 19 Mid-Year Meeting Program 37 Power News 41 Safety News 44 PCCA Member News 47 Industry Calendar 52 Advertiser Index 52 New PCCA Members 52 Final Word | by Steve Sellenriek 54
PCCA Journal|2nd Quarter 2014 9 SafetyWatch The Occupational Safety and Health Administration (OSHA) announced in April that it would be issuing a final rule to improve workplace safety and health for workers performing electric power generation, transmission, and distribution work. Following is the agency’s press release on the rule. “This long-overdue update will save nearly 20 lives and prevent 118 serious injuries annually,” said OSHA head Dr. David Michaels. “Electric utilities, electrical contractors, and labor organizations have persistently championed these much-needed measures to better protect the men and women who work on or near electrical power lines.” OSHA is revising the 40-year-old construction standard for electric power line work to make it more consistent with the corresponding general industry standard and is also making some revisions to the construction and general industry requirements. The updated standards for general industry and construction include new or revised provisions for host and contract employers to share safety-related information with each other and with employees, as well as for improved fall protection for employees working from aerial lifts and on overhead line structures. In addition, the standards adopt revised approach-distance requirements to better ensure that unprotected workers do not get dangerously close to energized lines and equipment. The final rule also adds new requirements to protect workers from electric arcs. General industry and construction standards for electrical protective equipment are also revised under the final rule. The new standard for electrical protective equipment applies to all construction work and replaces the existing construction standard, which was based on out-of-date information, with a set of performance-oriented requirements consistent with the latest revisions of the relevant consensus standards. The new standards address the safe use and care of electrical protective equipment, including new requirements that equipment made of materials other than rubber provide adequate protection from electrical hazards. Significant Changes to the Standards General Training • The degree of training must be determined by risk to the worker for the hazard involved. • Qualified workers must have training to recognize and control or avoid electrical hazards present at the worksite. • Line-clearance tree trimmers must have training to distinguish exposed live parts and to determine the voltage on those parts, and they must have training in minimum approach distances and how to maintain them. • It is no longer necessary for employers to certify that workers are proficient in safe work practices. Host Employers and Contractors • Host and contract employers must share information with each other on safety-related matters and must coordinate their work rules and procedures. Fall Protection • On and after April 1, 2015, qualified workers must use fall protection when climbing or changing location on poles, towers, or similar structures unless climbing or changing location with fall protection is infeasible or creates a greater hazard than climbing or changing location without it. • Fall arrest equipment must be capable of passing a drop test after exposure to an electric arc with a heat energy of 40±5 cal/ cm2 if the workers using the fall protection are exposed to flames or electric arc hazards. • On and after April 1, 2015, work-positioning equipment must be rigged so that workers can free fall no more than 2 feet. • Information on the inspection of work-positioning equipment appears in appendices to the standards. Minimum Approach Distances and Insulation • Revised minimum approach distances become effective on April 1, 2015. • Information to help employers establish minimum apOSHA Announces Final Rule Revising Standards for Power Work Continued on page 10
PCCA Journal|2nd Quarter 2014 10 proach distances appears in appendices to the standards. Protection from Flames and Electric Arc Hazards • The employer must assess the workplace to identify workers exposed to flame or electric-arc hazards. • No later than January 1, 2015, employers must estimate the incident heat energy of any electric-arc hazard to which a worker would be exposed. • No later than April 1, 2015, employers generally must provide workers exposed to hazards from electric arcs with protective clothing and other protective equipment with an arc rating greater than or equal to the estimated heat energy. • Information on protecting workers from flames and electric arcs appears in appendices to the standards. Deenergizing Transmission and Distribution Lines and Equipment • Multiple crews working together on the same lines or equipment must either: (a) coordinate their activities under a single worker in charge and work as if all of the employees formed a single crew; or (b) independently comply with the standard and, if there is no system operator in charge of the lines or equipment, have separate tags and coordinate deenergizing and reenergizing the lines and equipment with the other crews. Protective Grounding • Employers may use insulating equipment other than a liveline tool for placing grounds on or removing grounds from circuits of 600 volts or less under certain conditions. • Information on protective grounding for deenergized lines appears in appendices to the standards. Underground Electrical Installations • Special precautions apply when employees perform work that could cause a cable to fail. Electrical Protective Equipment • The Electrical Protective Equipment for Construction standard applies to all construction work, not just electrical power generation, transmission, and distribution work. That standard also replaces the existing construction standard’s incorporation of out-of-date consensus standards with a set of performance-oriented requirements that is consistent with the latest revisions of the relevant consensus standards. • The final rule recognizes a new class of electrical protective equipment, Class 00 rubber insulating gloves. • The standards adopt new requirements for electrical protective equipment made of materials other than rubber. Foot Protection • In addition to revising the Electric Power Generation, Transmission, and Distribution, and the Electrical Protective Equipment standards, OSHA also revised the General Industry Foot Protection standard to clarify that an employer must ensure that workers use protective footwear as a supplementary form of protection when the use of protective footwear will protect the workers from electrical hazards, such as static-discharge or electric-shock hazards, that remain after the employer takes other necessary protective measures. Additional information on the final rule is available at http:// www.osha.gov/dsg/power_generation/. Safety Watch Continued from page 9 www.fibersplicingtrailers.com 800-525-8460 sales@pelsue.com Pelsue can design and fabricate a trailer to meet your specifications. Numerous options and sizes are available. Proudly made in the USA When you need a disaster relief command center, mobile lab, or a fiber optic/copper splicing trailer, Pelsue has your solution. Lightweight aluminum frame Storage compartments Fiberglass gel coated body XL Variety of Gensets Laminated wood counter tops and so much more...
~ Charlie Murrah, President of Southwire, Energy Division The real power isn’t what runs through our wires. It’s what stands behind them. The people of Southwire all share a common commitment: to earn our customers’ business every single day. How do we do that? By providing what our customers need, when they need it. For some, that means our proactive inventory management system. For others, it’s an engineered solution to a pressing challenge. Still others rely on the knowledge, expertise and service we deliver on a daily basis. But whatever it is our customers need, one thing is for certain: the entire Southwire Company is committed to making sure they get it. Bring this ad to life. Download the Southwire® + app from the App Store or Google Play and launch it on your smartphone or tablet to see the ad come to life. The people behind the power. ™ www.southwire.com ©2014 Southwire Company, LLC. All Rights Reserved. ®Registered Trademark and ™Trademark of Southwire Company, LLC.
PCCA Journal|2nd Quarter 2014 13 The overhead and underground utility construction market and particularly the distribution and transmission pipeline construction markets are exceptionally healthy, and the overall mood and perspective of contractors is one of great optimism. Executive Summary In the immortal words of Led Zeppelin, the overall utility construction market has seen both good and bad times. The current market is perhaps the best in 60 years, and many utility contractors are expressing their optimism that this market will continue for some time. The optimism is particularly strong in the distribution and transmission pipeline construction markets, which are exceptionally healthy, while electric distribution is also expected to yield growth. Water and sewer are least attractive, and telecom, while positive, is not as robust as other markets. As a side note, Continuum is more bullish in the 2- to 4-year prospects of the telecom market. Utility Construction Index Periodically, Continuum Advisory Group tests utility construction firm perspectives to develop a Utility Construction Index (UCI). This index is designed to test perspectives of infrastructure and utility construction industry firms and establish the degree of optimism or pessimism prevalent. The index is made up of a confidence level, backlog projections, cost and productivity factors, and business outlook for all of the utility sectors, including electric power T&D, telecom, gas and liquid T&D, and water and sewer. Nine factors feed into the summary and were tested through three recent nationwide surveys of utility contractors. The results demonstrate seven factors as optimistic, and improving and two factors rated as pessimistic or worsening (Exhibit 1). Of greatest optimism are expected improvements in backlog, continued improvements in their firm’s performance, and continued improvement in the utility construction markets where they do business. The least optimistic area is the overall economy, where the level of optimism has fallen since 3rd quarter 2013. The concerns that have slowed the level of optimism revolve around federal monetary policy, deficit spending, the national debt, executive branch leadership, and a dysfunctional Congress. Expectations of rising costs in construction materials and labor are the two factors where pessimism rules. Historic Perspective Perspectives on the utility markets have moved up and down dramatically since the financial and economic crisis in 2008/2009. Utility construction spending has performed better than any other type of construction, exhibiting the smallest amount of shrinking in 2009, 2010, and 2011. The electric and gas sectors performed the absolute best, exhibiting steady spending from 2008 through 2010 and only very modest shrinking in 2011. Growth has and will continue “Good Times, Bad Times, You Know I’ve Had My Share...” Mark Bridgers and Nate Scott Overall Economy Overall Economy WhereWe Do Business Our Construction Business Residential Building Construction Market WhereWe Do Business Utility Construction Market WhereWe Do Business Our Expected Backlog Cost of Construction Materials Cost of Labor Productivity Exhibit 1 Utility Construction Index Summary 1st Quarter 2014 “[We are] very bullish about our business [and see] lots of opportunity out there.” – Overhead/Underground Utility Contractor Continued on page 14
PCCA Journal|2nd Quarter 2014 14 unabated in this sector through the forecast period of 2017 (Exhibit 2). As a frame of reference, electric and gas construction has experienced more than a decade of spending growth, moving from approximately $20 billion in 2004 to more than $60 billion in 2014 and potentially $80 billion in 2017. In a more specific and long-range perspective, it is Continuum’s belief and forecast that the pipeline construction market will experience three 5- to 7-year waves of spending increases. The first wave began in earnest in 2010 to 2012 and will flatten out in approximately 2015 to 2017, after which point it will again accelerate. A second and third wave will also take place. Continuum recently presented this forecast at the American Gas Association Operations Conference during a program titled “Pipeline Replacement Wave 2: 20142020.” In this program, the case was laid out for growth in the pipeline market alone from roughly $40 billion today to roughly $80 billion by 2027. After which, the pipeline market spending falls dramatically as much of the pipeline infrastructure in the United States will have been newly built or replaced with high quality and performance materials yielding a more effective and safe system. The telecom market, by comparison, is one where we have not been as bullish recently and continued to describe some of the fundamental challenges to this market that were constraining spending since 2012. Yet we continued to forecast accelerating growth beyond 2015. We now have a clearer perspective on what we think may happen post 2014 and believe the Google, AT&T, and other provider efforts to either enter markets in the case of Google or defend them in the case of the other service providers will yield a short mini-boom in telecom spending during 2015-2017 period (Exhibit 3). The swings in construction spending yield swings in perspective that are evident in the UCI. Two Exhibit 2 Utility Construction Put in Place Historical Figures and Forecasts Millions of current dollars Exhibit 3 Communications Construction Put in Place Historical Figures and Forecasts Millions of current dollars Good Times, Bad Times Continued from page 13 “Pipeline [construction activity] is continuing despite regulations by state and federal [authorities].” – Large National Pipeline Contractor Continued on page 16
You wanted to drill and steer simultaneously, so we invented the two-pipe, patented All Terrain drilling system more than a decade ago. You wanted reliability, so we gave you years of proven performance with the JT4020 All Terrain. Now you want more. Introducing the new JT60 All Terrain: reliable electronics, a durable frame with proven components and 9,000 ft·lb of rotational torque. Reliable power. Just like you wanted. WE’RE IN THIS TOGETHER. ROCK-CRUSHING POWER. ROCK-SOLID RELIABILITY. ALSO CHECK OUT THE NEW JT60. SEE YOUR LOCAL DEALER FOR DETAILS. ©2014 The Charles Machine Works, Inc.
PCCA Journal|2nd Quarter 2014 16 troughs in perspective and optimism occurred prior to 3rd Quarter 2009 and in 3rd Quarter 2012. Since 2012, the level of optimism about the utility market and specifically the pipeline market has continued to exhibit both positive perspective and very high optimism, with index figures well above 50.0 (Exhibit 4). Among the various utility construction sectors, gas transmission and distribution exhibit the highest optimism over 3-month, 1-year, and 3-year timelines, and electric distribution is viewed optimistically in a 3-year timeline (Exhibit 5). Index scores above 50 indicate an improving market and level of optimism. An index score of 100 is the maximum on the scale, and these sectors exhibit scores of 80 or higher and far exceed the level of optimism in any of the other segments. Only the sewer sector falls below the 50 range, indicating that this market is perceived as shrinking and defined by pessimism. All other sectors are demonstrating varying levels of optimism. Among the more moderate optimism sectors are telecom and electric T&D where optimism is rising over the next 3 years into ratings in the 70 range. Scarcity and Constraint The optimism in this sector is only tempered by scarcity that is faced. The utility market sector is already experiencing scarcity. Looking forward, these challenges will continue to the point where only the most progressive and forward-thinking contractors will thrive. Challenges to be faced include: • Labor: Low birth rates, aging population, and lower workforce participation rate.1 • Utility Internal Workforce Older than 55: 40 percent of inspectors, 25 percent of surveying and mapping specialists, 25 percent of operating engineers, 25 percent petroleum engineers, 25 percent frontline supervisors.2 • User Rate Increases: Ratepayer and PUC fatigue due to rates rising faster than inflation since 2005.3 • Technology Innovation: The pace of change in the construction industry is glacial and must accelerate. The obvious reaction to scarcity is to see challenges as opposed to promise and opportunity. We believe successful firms will embrace the growth and potential scarcity in these markets for what they are—promise and opportunity. Conclusion “No matter how I try, I find my way into the same old jam.” Don’t get caught in the same old jam; instead, embrace this utility construction environment as one filled with the promise and opportunity. We offer three critical strategies to help Exhibit 5 UCI Utility Index Detailed Results by Market Sector 1st Quarter 2014 Business Outlook 3 month 1 year 3 year Interpretation Electric Distribution 73.4 72.5 81.5 In nearly all cases, the markets are perceived as positive and improving at a faster rate over the 1 and 3 year timelines. Electric Transmission 66.7 63.9 74.3 Telecom 65.3 71.9 71.0 Gas/Liquid Distribution 85.3 91.5 93.1 Gas/Liquid Transmission 85.9 92.7 92.4 Water 55.9 64.1 75.0 Sewer 48.6 57.9 66.2 “Our general outlook is positive with expanding growth prospects.” – Large National Pipeline Contractor Exhibit 4 Historic Summary Utility Construction Index 3rd Quarter 2009 to 1st Quarter 2014 Interpretive Note: A diffusion index is designed to establish whether participants perceive a positive and optimistic business environment versus a negative or pessimistic one. A reading above 50.0 indicates improving or expansion, a rating at 50.0 indicates remaining the same, and below 50.0 indicates worse or contracting. Therefore, if a reading goes from 30.0 to 40.0, then the result still implies a decline from the previous quarter because 40.0 is below 50.0, but the decline is slowing because 40.0 is above 30.0. As another example, if the diffusion index changes from 35.0 to 70.0, it implies a change in direction and improvement over the previous quarter, not because 70.0 is above 35.0, but because 70.0 is above 50.0. Good Times, Bad Times Continued from page 14
PCCA Journal|2nd Quarter 2014 17 innovative contractors thrive: 1. Strategic Thinking: Picking the right geographies, market segments, customers, and service types will prove critical, and applying strategic thinking techniques to this challenge is a powerful solution. 2. Skill Building: Given the various types of scarcity, and particularly labor scarcity, building internal skills through training can provide the stamina needed in a challenging environment. Three types of training: • Technical, • Management, and • Cross Functional are necessary. 3. Embrace Innovation, Disruption, and Scarcity: Three areas require particular attention. • Integration of communication and asset management technology into design and construction, • 4D and 5D design and construction preparation techniques, generically referred to as Building Information Modeling (BIM), and • Integrated project delivery techniques. Utility capital asset owners, facility operators, and utility construction service providers must pick the right markets, build their skills, and embrace scarcity for the opportunities it presents to cause the feelings of optimism to come to fruition. Mark Bridgers and Nate Scott are consultants with Continuum Advisory Group, which provides management consulting, training, and investment banking services to the worldwide utility and infrastructure construction industry. They can be reached at (919) 345-0403 or mbridgers@continuumag.com or followed on twitter at @MarkBridgers. For more information on Continuum, visit www.continuumag.com. Notes 1. “Civilian Labor Force Participation Rate,”Bureau of Labor Statistics, October 1, 2013. 2. “Current Population Survey,”Bureau of Labor Statistics. 3. “Electric Power Monthly,”U.S. Energy Information Administration, September 30, 2013. GDNFFDKIIDHFMM © Dy zDy Easier! Faster! More Efficient! More Productive! FTTx & Enterprise Fiber Installations Just Got The Gulfstream™ 200 Micro Fiber Blower from Condux! The Condux Gulfstream 200 micro fiber optic cable blower is ideal for FTTx and Enterprise micro fiber installations. Portable and powerful, the Gulfstream 200 provides lightweight, single hand operation for installation of micro fiber from 0.8 mm to 5.5 mm in diameter. Electronic controls help protect fiber during installation, providing convenient push force, distance and speed control adjustments. Plus, the unit’s compact size allows for easy transport between job sites. Put the most advanced micro fiber installation equipment to work on your next project. Choose the Gulfstream 200 from Condux!
TOOL UP WITH THE PROFESSIONAL LINEMAN’S SUPERSTORE SALES RENTAL REPAIRS For more information call one of our tool specialists 877-860-5666 Toll Free or 630-860-5666 International Scan the code to view our 2014-2015 online catalog or visit us at www.tallmanequipment.com
PCCA Journal|2nd Quarter 2014 19 TELECOM NEWS Continued on page 20 Competition, Uncertainty Pose Challenges to Rural Broadband The nation’s small, independent telecommunications providers continue to make significant progress in providing availability of high-speed broadband to rural Americans, but competition within the marketplace as well as regulatory uncertainty continue to pose challenges, according to a new survey by NTCA— The Rural Broadband Association. The “NTCA 2013 Broadband/Internet Availability Survey Report” found that 41 percent of survey respondents currently deploying fiber serve at least 50 percent of their customers using fiber to the home (FTTH), up from 33 percent in 2012. Seventy-six percent of respondents indicated that they have a plan in place to continue deployment: 58 percent expect to offer fiber to the node (FTTN) to more than 75 percent of their customers by the end of 2016 and 61 percent expect to be able to provide FTTH to at least half of their customers by 2016. While advancements are being made, more than half of respondents indicated their ability to compete with larger providers may hinder their efforts. However, they are taking numerous marketing steps to combat this, including bundling services (87 percent) and offering free equipment installation (79 percent), price promotions (74 percent), free modems (59 percent), free introductory service (45 percent), and free education and training (33 percent). Eighty percent of respondents also indicated that regulatory uncertainty continues to discourage expanding broadband deployment. Chief among their concerns is what mechanism will ultimately take the place of the quantile regression analysis (QRA) caps that were eliminated by the FCC in April. “While the regulatory picture has become somewhat less murky on Universal Service Fund support with the elimination of the QRA, the future is still far from certain,” said NTCA Economist Rick Schadelbauer. “Absent some sense of predictability, small carriers will be loath to commit precious capital resources to long-term projects, and lenders will not be willing to make loans when payback cannot be satisfactorily guaranteed.” Twenty-seven percent of NTCA members participated in the online survey in the winter of 2013. The survey comprised general questions about the respondents’ current operations, competition, marketing efforts, and current and planned fiber deployment. Additional questions addressed the internet backbone, voice over internet protocol and video. The report is available at www.ntca.org. Appeals Court Upholds FCC Rural Broadband Initiative The Federal Communications Commission (FCC) saw its 2011 proposal to expand broadband to rural areas upheld after a judge rejected arguments from carriers over the loss of telephone subsidy funds, according to eclectronista.com, a technology news website. The Connect America Fund, a $4.5 million initiative aimed at spreading faster internet access, was under review by the U.S. Court of Appeals for the Tenth Circuit in Denver after numerous telecommunication companies challenged the plan. The 297-page filing outlined many of the claims from providers, often worried about the financial impact that would be caused by the FCC shifting annual telephone subsides to broadband. Concerns were brought up about the change in the intercarrier compensations system, which might have a larger effect on smaller telecom companies due to the exchanging of funds between carriers to transfer calls between one another. These sorts of transfers are more common in
PCCA Journal|2nd Quarter 2014 20 rural areas, requiring more payouts because many of the calls requiring a move start from these smaller carriers. The court rejected the claims made by the carriers, stating that after “considering those claims, we find them either unpersuasive or barred from judicial review.” FCC Commissioner Mignon Clyburn issued a statement commenting on how pleased she was with the decision. “After years of good faith efforts faltered, voting to approve the comprehensive reform of universal service and intercarrier compensation continues to be one of my proudest moments at the FCC,” Clyburn said. “The reforms are changing the lives of millions of Americans who will receive broadband for the first time. I am extremely pleased that the Tenth Circuit Court of Appeals has affirmed the FCC’s decision. I look forward to working with the chairman and my colleagues as we tackle the next steps of reform.” NTCA—The Rural Broadband Association issued the following statement from its CEO Shirley Bloomfield regarding the ruling: “While today’s court decision is disappointing, NTCA—The Rural Broadband Association continues to work with the FCC and Congress to address many of the concerns rural carriers have raised over the last two-plus years about aspects of the 2011 Universal Service Fund and intercarrier compensation reforms. Through hundreds of meetings with commissioners and staff and engagement with members of Congress, we have already achieved several key course corrections since 2011, including the elimination of the quantile regression analysis caps and reinstatement of safety net additive support. “The court decision could have helped to address several still lingering concerns with respect to intercarrier compensation changes and the establishment of more proper and sufficient universal service budgets, but those are matters we will now look to address through further engagement and potential course corrections in ongoing conversations with the FCC and Congress. We also expect that certain of the court’s findings—such as the states retaining the authority to define network edges for interconnection and the need for the FCC to re-examine its budget in a few years—could be helpful in those conversations.” AT&T and DIRECTV on May 18 announced that they have entered into a definitive agreement under which AT&T will acquire DIRECTV in a stockand-cash transaction for $95 per share based on AT&T’s Friday closing price. The agreement has been approved unanimously by the Boards of Directors of both companies. Of particular interest to PCCA members, the press release announcing the sale said that AT&T will use the merger synergies to expand its plans to build and enhance high-speed broadband service to 15 million customer locations, mostly in rural areas where AT&T does not provide high-speed broadband service today, utilizing a combination of technologies including fiber to the premises and fixed wireless local loop capabilities. This new commitment, to be completed within four years after close, is on top of the fiber and Project VIP broadband expansion plans AT&T has already announced. Customers will be able to buy broadband service stand-alone or as part of a bundle with other AT&T services. Following is more information from the press release. The combined company will be a content distribution leader across mobile, video, and broadband platforms. This distribution scale will position the company to better meet consumers’ future viewing and programming preferences, whether traditional pay TV, on-demand video services like Netflix or Hulu streamed over a broadband connection (mobile or fixed) or a combination of viewing preferences on any screen. The transaction enables the combined company to offer consumers bundles that include video, high-speed broadband, and mobile services using all of its sales channels—AT&T’s 2,300 retail stores and thousands of authorized dealers and agents of both companies nationwide. “This is a unique opportunity that will redefine the video entertainment industry and create a company able to offer new bundles and deliver content to consumers across multiple screens— AT&T to Acquire DIRECTV Telecom News Continued from page 19 Continued on page 22
www.ptsupply.com (901) 866-3300 (800) 669-0808 website: na.prysmiangroup.com/telecom FIELD TESTED. CONTRACTOR APPROVED. Together, Prysmian and Power & Tel deliver fiber cable solutions that help link communications to communities.
PCCA Journal|2nd Quarter 2014 22 Telecom News Continued from page 20 Verizon has installed almost 89 million feet, or nearly 17,000 miles, of fiber optic infrastructure in New York City, enough to stretch over six trips between New York and Los Angeles. The company’s fiber infrastructure in the city includes facilities for interoffice and backbone network equipment, specialized fiber for large enterprise customers, and its FiOS services serving consumers and small businesses. FiOS currently delivers download speeds as high as 500 megabits per second (Mbps) and upload speeds of up to 100 Mbps, which the company says are the fastest internet speeds available in the city. “This is the largest, most ambitious fiber-optic deployment in any U.S. city,” said Kevin Service, Verizon’s president for the company’s Northeast area. “We have invested more than $3 billion in the city alone, making it one of the most ‘fiberized’ cities on the planet. Our 12,000 New York City employees are proud to bring this future-proof technology to the people of New York City.” He said that the company has worked with the city, confirming each annual benchmark established for upgrading its network for video service availability in the five boroughs. As of the end of 2013, the company had completed network upgrades passing premises in 90 percent of the Bronx, 89 percent of Brooklyn, 94 percent of Manhattan, 90 percent of Queens, and virtually the entirety of Staten Island—all as called for under the Cable Franchise Agreement with the city. In addition, the company has already made FiOS available to more than 60,000 New York City public housing units. After Superstorm Sandy, the company accelerated its plans for installing fiber-optic technology to replace cables and other infrastructure elements that were destroyed by the unprecedented flooding. In the most dramatic example, the company installed fiber-optic cables and networking equipment throughout lower Manhattan and in some of the coastal neighborhoods in Brooklyn (such as Coney Island and Sheepshead Bay) and Queens (such as Belle Harbor and Breezy Point) giving all of those areas a robust and reliable all-fiber-optic telecommunications network for years to come. mobile devices, TVs, laptops, cars, and even airplanes. At the same time, it creates immediate and long-term value for our shareholders,” said AT&T Chairman and CEO Randall Stephenson. “DIRECTV is the best option for us because they have the premier brand in pay TV, the best content relationships, and a fast-growing Latin American business.” “This compelling and complementary combination will bring significant benefits to all consumers, shareholders, and DIRECTV employees,” said DIRECTV President and CEO Mike White. “U.S. consumers will have access to a more competitive bundle, shareholders will benefit from the enhanced value of the combined company, and employees will have the advantage of being part of a stronger, more competitive company, well positioned to meet the evolving video and broadband needs of the 21st century marketplace.” AT&T has also committed to offer stand-alone broadband. For customers who only want a broadband service and may choose to consume video through an over-the-top service like Netflix or Hulu, the combined company will offer stand-alone wireline broadband service at speeds of at least 6 Mbps (where feasible) in areas where AT&T offers wireline IP broadband service today at guaranteed prices for three years after closing. DIRECTV’s TV service will continue to be available on a stand-alone basis at nationwide package prices that are the same for all customers, no matter where they live, for at least three years after closing. AT&T will continue its commitment for three years after closing to the FCC’s Open Internet protections established in 2010, irrespective of whether the FCC re-establishes such protections for other industry participants following the D.C. Circuit Court of Appeals vacating those rules. The transaction does not alter AT&T’s plans to meaningfully participate in the FCC’s planned spectrum auctions later this year and in 2015. AT&T intends to bid at least $9 billion in connection with the 2015 incentive auction provided there is sufficient spectrum available in the auction to provide AT&T a viable path to at least a 2x10 MHz nationwide spectrum footprint. Verizon Blankets New York City
PCCA Journal|2nd Quarter 2014 23 Nearly 1.2 Million Add Broadband in Q1 Leichtman Research Group, Inc. (LRG) found that the 17 largest cable and telephone providers in the United States—representing about 93 percent of the market—acquired nearly 1.2 million net additional high-speed internet subscribers in the first quarter of 2014. These top broadband providers now account for more than 85.5 million subscribers, with top cable companies having 50.3 million broadband subscribers and top telephone companies having more than 35.2 million subscribers. Other broadband findings for the quarter include: • Overall, broadband additions in Q1 2014 amounted to 105 percent of those in Q1 2013. • The top cable companies accounted for 83 percent of the net broadband additions for the quarter versus the top telephone companies. • The top cable companies added about 970,000 subscribers, representing 121 percent of the net additions for the top cable companies in Q1 2013. • The top telephone companies added about 200,000 subscribers, 64 percent of the total net additions for the top telephone companies in Q1 2013. • AT&T and Verizon added 732,000 subscribers via U-verse and FiOS in Q1 2014, while having a net loss of 638,000 DSL subscribers. U-verse and FiOS broadband subscribers now account for 49 percent of Telco broadband subscribers, compared to 40 percent a year ago. • The top cable broadband providers have a 59 percent share of the market versus Telcos, with about 15.1 million more subscribers than the top telephone companies, compared to 13.1 million more a year ago. “With nearly 1.2 million net additions in the first quarter of 2014, broadband providers had their best quarter in two years,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “If recent history is an indicator, however, gains will be slower over the next couple of quarters. In each of the past four years, net adds in the first quarter were greater than in the second and third quarters combined.” EECI10208-S01-01 BRON logo is a registered trademark of RWF Industries • Static or Vibratory • 84” (213 cm) Plow Depth • Left/Right Offset ADD-ONUTILITY PLOWS GET UNDERWAY
NESCO provides everything linemen need to get the job done: from aerial lifts, cranes, diggers and stringing gear to blocks, aftermarket parts, tools and accessories. NESCOmaintains one of the industry’s largest rental fleets and service networks in the country. With over 40 locations in NorthAmerica, 25+ years of industry experience, and as an authorized distributor for your most trusted manufacturers: Terex, Hogg & Davis, Sherman + Reilly, Skylift, Manitex and more; NESCO’s extensive fleet and knowledgeable staff offer the right rental equipment and service you need to get working. PREMIER PROVIDER OF RENTAL EQUIPMENT CONTACT US NOW & GET WORKING! RENTAL EQUIPMENT & PARTS LINEMEN NEED TO GET THE JOB DONE 41022060
PCCA Journal|2nd Quarter 2014 25 Maybe it was the improving economy, or it could have been the outstanding educational program, the elegant resort, or the desire to see a bunch of old friends and colleagues. Certainly, a lot of folks were looking to escape the brutal winter that gripped much of the nation. But whatever the reason, the fact remains that 368 PCCA members and their families traveled to St. Thomas in March for the 69th Annual PCCA Convention. It was the highest attendance at a PCCA meeting since 2001. PCCA President Glen Amerine and his wife, Pat, hosted the convention and planned an amazing week for the membership. The big PCCA crowd was greeted in St. Thomas by great weather, cool speakers, and a program full of educational and networking value. Whether in a session room, at the swim-up bar, or on a boat cruising the Caribbean, PCCA members were meeting interesting people, absorbing new ideas, and having lots of fun. The convention kicked off on March 14 with PCCA’s new Leadership Development Program, a full-day session to advance the leadership skills of PCCA members. Led by FMI’s Andy Patron, the session covered trends in construction, how to improve one’s leadership skills, and knowing when to lead vs. manage. Attendees completed personality surveys before the convention and during the session reviewed the results and discussed how to interpret them. The 28 LDP participants met again the following morning for a discussion of leadership with one of the industry’s most successful leaders, PCCA Past President Austin Shanfelter. Austin dispensed solid leadership advice while telling the audience about his start in the industry, how he made the transition from running the family cable business to running industry giant MasTec, and about the success of his latest venture, Global HR Research. “Remember where you came from,” Shanfelter advised. “We wouldn’t be here if we didn’t have guys digging in the trenches. They pay your salary.” The convention kicked into high gear that evening with the Opening Session featuring football great Merril Hoge and a welcome reception on the pool deck overlooking the magnificent Caribbean. Hoge shared his life philosophy of “find a way,” which was his rallying cry as he worked toward a career in the NFL and then again later in life as he battled cancer. He urged the audience to meet their challenges head on. “Nobody in this room can’t be excellent,” he said. The centerpiece of the education program at PCCA meetings is always the Construction Industry Roundtable, and this year in St. Thomas was PCCA Makes Big Splash in St. Thomas Continued on page 26
PCCA Journal|2nd Quarter 2014 26 no exception, as the packed agenda and packed room will both attest. PCCA President-Elect Steve Sellenriek, Sellenriek Construction, welcomed attendees to the roundtable and then kicked it to his brother, Heath, for a report on the association’s education initiatives—the previously mentioned LDP sessions and the wildly successful PCCA Project Manager Academy (PMA) that was held in Atlanta in January. Several contractors who sent employees to the PMA chimed in to vouch for the program’s value and for the enthusiasm it imparted on their people. Heath Sellenriek reported that PCCA will hold another PMA next January in Atlanta. The roundtable also included an Association of Communications Engineers report from Tom Harter of Engineering Associates, Inc., who discussed the lack of progress on the RUS 515 contract, the difficult times at the understaffed RUS, and the uncertainty created by changes to the Universal Service Fund and the Connect America Fund. Economist Mark Bridgers, Continuum Advisory Group, reported that the big-picture economy looks positive for 2014 and that the markets in which PCCA members work are the best performing. (See article on page 13.) FMI’s Chris Daum contributed yet another fascinating industry discussion to the roundtable, two days after his always-popular Utility Construction Industry Overview session. Daum also had upbeat views of PCCA markets, especially gas distribution and power. The convention’s other educational session, What’s Up with Obamacare?, also attracted a big crowd of business owners/operators wondering about their responsibilities under the new law. Maria Fabre Manuel, Onebane Law Firm, led the session and began it by telling the audience what most of them had already realized: “It’s just a fiasco. It’s the most pathetic rollout of a major government program in our lifetime.” She then patiently explained the employer obligations and where we stand on the multitude of unresolved issues with the law. Beyond the education, PCCA meetings also promote fellowship, friendship, and fun. PCCA Past President Herb Fluharty hosted Sunday morning’s Annual Prayer Breakfast, which featured an enlightening talk from Pastor Rob Wood, of Unite Church in Fayetteville, Ark. Wood spoke passionately of his personal religious journey and his church’s missionary work in India and Pakistan. (You can learn more about the church and its mission at www.unitedchurch.net.) Another highlight of PCCA conventions is the Annual Associates Exhibit & Breakfast, and this year a steady stream of contractors met with manufacturer and supplier members over cups of coffee and a nosh, talked about their businesses, and learned a bit about new products and services that can help them on the job. This year’s Auction, expertly managed by Michael Whitebread and Charles Cook of J.J. Kane Auctioneers, was also a huge success, raising nearly $200,000 for PCCA programs and services. PCCA thanks all members who donated and purchased auction items. The PCCA program also allowed plenty of time for outdoor activities, including the PCCA Golf Tournament, tours of St. John and St. Thomas, and expeditions with sailing, snorkeling, kayaking, deep sea fishing, and the BOSS Underwater Adventure. Great times were had by all as evidenced by the photos on the following pages. The 2014 PCCA Convention closed in style with a Final Banquet overlooking the Caribbean that included everything from fire eaters and limbo dancing to roast pig and reggae music. Outgoing President Glen Amerine thanked everyone for a wonderful year, and incoming President Steve Sellenriek talked about another excellent year to come and invited everyone to the 2014 Mid-Year Meeting, July 23-28 at Camden on the Lake, Lake Ozark, Mo. See you at the Lake! PCCA 2014 Continued from page 25 5Education Committee Chair Heath Sellenriek, Sellenriek Construction, updates members on PCCA’s Leadership Development Program and Project Manager Academy. 4The room is always crowded and the audience attentive during Chris Daum’s Utility Construction Industry Overview.
PCCA Journal|2nd Quarter 2014 28 Images of PCCA 2014 6On a lovely evening overlooking the Caribbean, PCCA members enjoy the VIP Reception, which includes past presidents, board members, sponsors, and participants in PCCA’s Leadership Development Program.
PCCA Journal|2nd Quarter 2014 29 Keynote speaker Merril Hoge urged the audience to use patience and perspective when dealing with those whom they lead, whether on the job or at home:“Measure people with a yardstick of their years, not yours.”6 4At the Opening Session, PCCA President Glen Amerine, Amerine Utilities Construction, welcomes members to St. Thomas and the 69th Annual PCCA Convention.
PCCA Journal|2nd Quarter 2014 30 3About as VIP as you can get at a PCCA meeting, Steve and Flori Spears, Steve Bauchman, and Gary Akin catch up during the VIP Reception. 5PCCA’s first couple, Glen and Pat Amerine, planned a truly memorable convention at one of the world’s most beautiful spots. Here, they enjoy a quiet moment before the Final Banquet.
PCCA Journal|2nd Quarter 2014 31 The smiles of Erica and Laurie Ferguson brighten the Silent Auction.5 4The Myers family—Brent, Layla, Tracy, and Maxwell— get a grand welcome to the convention’s Final Banquet.
PCCA Journal|2nd Quarter 2014 32 4Past Presidents Kevin Mason, ElectriCom, and Herb Fluharty, MGI Network Services, talk a little telecom (or maybe Big 10 basketball) over breakfast. 3Charles Cook and Michael Whitebread, J.J. Kane Auctioneers, welcome Lori Stephens to the Associates Exhibit. 5Jeff and Dale Brown, Global Machinery, enjoy time with James Pace, Wagner Smith. 4Madison Hall and Jacob Hall make sure that Granddad Ron has everything straight at the RWF BRON table. 5Brian Showley, Vac-Tron, (second from left) shares vital business information, no doubt, with Mike Charles, ElectriCom; Steven Forrester, Sherman + Reilly; and David Brenner, Amerine Utilities Construction. 6Incoming PCCA President Steve Sellenriek, Sellenriek Construction, maneuvers through the busy agenda at the Construction Industry Roundtable. PCCA President Elect Tim Killoren explains plans for the 2015 MidYear Meeting, September 23-26 in Charleston, S.C.6 5GregWilliams (left), Prysmian Group, talks with new member Joel Smith of Greenlee Textron.
PCCA Journal|2nd Quarter 2014 33 6Todd Myers, Kenneth G. Myers Construction, is delighted with his Auction purchase, as Tony Briggs, Vermeer, and Stacy Bowdring, PCCA, can attest. 5Auctioneer Michael Whitebread, J.J. Kane Auctioneers, deftly guides a raucous PCCA crowd through the Annual Auction, which this year raised nearly $200,000. 3Jeremy Payton, ElectriCom, scopes out some of the items in the Silent Auction. 4Christia Radichel, daughter of Condux’s Brad Radichel, was not going to be outbid for the Disney vacation. 4Kelly McGehee andWhitney Dotson are all smiles during the Silent Auction. PCCA sharks circle the bidding tables and plan their attacks during the Silent Auction.5
RkJQdWJsaXNoZXIy MjE3MDU=