The Construction Gang

Engcon Provides Flexibility

At 22 years of age, Jorma Kalteva has already been running his own contracting company for several years. He first gained experience as a teenager, operating a variety of construction machines owned by a family acquaintance.  Now Kalteva has a JBC200 crawler excavator with an Engcon EC20, a Lannen 860C backhoe loader with an Engcon EC10, a Liebherr 522 wheel loader, and a Volvo A25 dumper. Jorma and his two employees alternate among these machines depending on the job at hand. “We’re a
small but flexible company that does almost every type of construction job,” he said.

Jorma recently signed a three year contract for a water and sewer project, so the future looks bright. He said that a tilt rotator is essential equipment for the project, “Many of my jobs would be impossible without a tilt rotator, and the ones that could be done would take a lot more time.” In addition, he has been impressed with the reliability of the tool: “I’ve been using this machine and tilt rotator for about a year now, and everything works perfectly.” After finishing his day’s work on the water and sewer project, Jorma continues his day by digging building foundations and planning construction sites. The flexibility of his equipment gives his company the flexibility to perform many types of work.

PNE Corporation’s Classic Charity Golf Tournament

Communities are made of many parts.  Next to the homes and families, businesses play a large role.  In addition to making money and creating jobs, giving back is one of the greatest things a business can do.  That explains why the 11th Annual PNE Corporation’s Classic Charity Golf Tournament is such a success.

This year’s event will be held August 8th at the Longview Country Club and will benefit the Cowlitz County Habitat for Humanity (CCHH). 

According to Spencer Partridge, the general manager of construction and sales for PNE, a company that boasts over 150 full-time employees with a rolling fleet of over 200 vehicles that does everything from new construction to environmental clean up, the new venue introduces a little change to what he calls, “A pretty spectacular event that everyone goes away enjoying and you hear about all year long.”

    What started as an act of customer appreciation has evolved into a fundraiser and, as it has for the past two years, partners with the Cowlitz County Habitat for Humanity.  After the relationship was started, Partridge says, “It was obvious it was the right thing to do, helping people within the community.  You can see the effect of making someone a home.”

Last year the event raised $40,000.  This year Spencer hopes to be able to hand over another check for at least that much. 

Although the proceeds help locally, they do much more than that.  According to Len Lelevich, Executive Director for the CCHH, being an affiliate of Habitat for Humanity International ensures that a family abroad will benefit as well.  In this case, a family in Kyrgyzstan, a former Soviet republic that borders China to the east, will benefit.

If you would like to contribute, there’s still time.  PNE is looking for sponsors to meet their goal.  You can contact Kathy at (360) 423-2245.  If you would like to contribute through the local chapter of Habitat for Humanity, you can contact either Len or Diane at (360) 425-6177. Sponsorship levels vary from $350.00 to $5,000.00.  In addition, donors can contribute items that can be used for prizes and gifts or be raffled off.

Dozer Day 2008

Under a blazing sun that made the Rinker Quarry feel more like Egypt than Vancouver, families streamed into Dozer Day. At the ticket gate, volunteers handed out goody bags to all the kids. Included in the bags were yellow plastic helmets for the junior construction workers to wear. Once they had donned their safety gear, the kids and families got in line for a ride into the event site. More volunteers (part of a 500 person crew) guided the crowd onto a loading ramp that looked like it could have been used to build the base of a pyramid at Giza.

One articulated hauler after another would then back up to the ramp, and the visitors would carefully scrunch together on benches for their ride through the rock pit. At the entrance, the kids hopped out and began the most difficult part of their day, deciding what to do first. Many made a beeline for the Kids Dig, a huge mound of moist sand, just right for pint-sized earth movers. Kids were occasionally distracted from digging by the roar of a souped-up Ditch Witch, the Super Witch VI, whose 350 horsepower small block Chevy engine reverberated now and then across the grounds. Nearby, some kids tested their balance on the rim of a TB175 rubber track in the VIQAN display, while others ran time  trials back and forth across an MST 2300 track, which weighs in at 5,000 pounds. Still other budding weight lifters tried to get a SK500 track, weighing in at mere 70 pounds, up off the ground.

From there kids could get in line to take a turn sharing the controls of a Sunbelt dozer that scraped a deepening pit throughout the day. By mid-afternoon young operators were treated to a mini thrill ride as the dozer would climb steeply up one side of the mound, teeter for a moment at the top, and then come crashing down to the delighted squeals of the kids at the controls.  Nearby, novice operators used the boom of Feenaughty’s excavator to knock down a variety of objects.

Spread across the yard were various other excavators, backhoes, and cranes, each with its own group of kids queued up, waiting for a chance to try out the controls. Still other youngsters happily flew down the inflatable monster truck slide or crawled through corrugated pipe tunnels.

In addition, families could stroll though a line of booths to collect stickers for their hats, spin for prizes at the George Schmid and Sons display, take part in a musical trivia contest at the Radio Disney booth, or get a hot dog or hamburger from Beaches.

By the end of the day, kids were tired and happy. With strains of “We Are the Champions” drifting his way from the Radio Disney speakers, Arron Stephens reflected on his son Grant’s experience, “He loves all the equipment, the tubes, everything.” That sentiment was echoed repeatedly as people left. Renee Nutter, who coordinated the event, said that when she asked children what they had enjoyed the most, the standard reply was, “Everything!”

Valley Truck & Equipment

Valley Truck & Equipment of Seattle Washington has come a long way since its beginning over forty years ago. John Welch Sr. started the company in 1961 strictly as an auto wrecking business; however, in the early 70s, he took advantage of an opportunity he saw in Canada and started purchasing Canadian trucks, which are built for heavier load limits, for resale in the U.S. This proved successful and in the 80s, the company expanded into buying domestic backhoes, loaders, excavators, grey market machines, and other construction equipment.

John Welch Jr. joined the company in 1977 as a general bookkeeper and truck washer. As much fun as washing trucks was, John Jr. decided to attend Seattle University, and he graduated with a Bachelor’s Degree in Accounting in 1984. Today he is the company’s General Manager or, as he refers to himself, “the guy who’s got to be here.”

John Jr. continues to look for ways to keep the company evolving with the times and in 2004 toured Asia in order to visit its auction houses. He found that Asia had a surprisingly wide selection of high-quality machines that could be purchased at a relatively low cost.

This motivated him to make more direct purchases. While the Internet has made it much easier to review machines and purchase them without stepping foot in Asia, John Jr. feels it is still very important to visit and inspect the items he is getting. John Jr. has also kept up with the explosive growth in the mini excavator and compact machine market.

This growth has been caused by two primary reasons. First, the number of small job sites continues to increase while the number of large job sites remains relatively constant.

Additionally, many home owners like to be “weekend warriors” and do their own work, and the cost of compact machines and rental rates, especially for grey market machines, have become affordable for many individuals.

One concern customers have is the availability of replacement parts. In Washington and Oregon there are several established and emerging companies focused on stocking and supplying parts for these machines. And John Jr. points out that even if a part needs to be shipped in directly from Japan, it can be done within a few days at a very reasonable price.

John Jr. believes that quality and customer satisfaction are the keys to a successful business like his. In addition to purchasing the best low-hour equipment, his mechanics check out every machine before it goes out the door. His employees are also trained to help customers select the equipment best suited for their needs. This is particularly important for individual customers who may not have much experience with compact equipment. Valley even does something most retailers don’t—it allows a limited, test rental. John Jr. says that he wants his customers to be satisfied with what they are getting: “Reputation is key. You’ll be hard pressed to find anybody who’s had a bad experience with us.”

John Welch Jr. may be contacted at: Valley Truck & Equipment, 539 West Valley Highway South Pacific, Washington 98047 PH: (253) 333-0313 FX: (253) 333-0308

ACE Sales and Leasing

If you ask customers of ACE (All Construction Equipment) Sales and Leasing why someone should purchase their next piece of equipment from them, you will probably hear about their pricing, inventory, and approachability.

However, if you ask president Rob Beal why people should buy from him, the answer is simple, “Because my dogs are hungry.” If you spend any time at all talking with Rob, you will soon find his good selection of mini excavators, fork lifts, track dumps, and medium duty trucks also comes with a good sense of humor.

Aside from that, Rob says that their new location is a plus. Located in Oregon just off of I-205 at 7100 NE Columbia Boulevard, they have a better frontage and more space.

That’s where you will find another difference according to Rob. “We’re not a car lot, we don’t hold you hostage.” On top of that, Rob says you can pay however you like, “Write a check, get help with financing… you can even put some of our stuff on a credit card – and score yourself some extra air miles.”

That’s probably why ACE sees so many return customers. Rob says new customers are great, but he’s always surprised at how many come back again. They either come in to upgrade their equipment or come back with a friend who needs help with a purchase. But the real reason so many return is probably best summed up when Rob said, “All our smiling personalities here.” Even so, their wide selection, ability to help with shipping and transportation, and a constantly changing inventory probably figure in as well.

All of this allows them to help just about anyone. Most of the big companies buy new, but the small guys want the most bang for their buck,” Rob says. “They don’t need the depreciation. Why spend $50,000 versus $15,000 to get what you need?”

Getting what people need is what they do well. Since 1997, Rob has traveled overseas at least once a year to get used equipment. Most of it comes from Japan, but other pieces come from Taiwan, and on occasion, China.

For Rob, getting the pieces overseas just makes sense because a good deal of equipment in the states is manufactured there (Japan) anyway. Low hour machines by big name manufacturers, like Komatsu, ensure that parts and service will be available.

Each piece is then checked out and put on a container ship or a roll-roll (a large ship that transports vehicles that roll their cargo on and then roll it off at its destination). Warranties depend upon the individual piece, but most have at least 30 days. “If something’s going to happen with a piece of equipment like this,” Rob says, “it’s going to happen within the first week.”

And Rob knows his equipment. Prior to this, he and his brother Ray Beal ran auctions for industrial construction equipment. They held auctions four or five times a year. After noticing a demand in the Portland market for mini excavators, they decided to set up shop.

The two brothers, Rob and Ray, work with a third partner, Jeff MacKenzie. According to Rob, Jeff came to them because he “really digs the equipment.” Besides, he had worked for Konica for twenty-plus years and needed something to do.

Rob says that twenty years of experience helped the two brothers take their auctioneering business and shape it into what it is today. “We were used to auctions,” Rob said, “here today, gone tomorrow, but Jeff helped as a facilitator and planner.”

The three partners - Rob, Ray,and Jeff – serve as president, secretary,and vice-president. But titles apparently don’t mean much. “When we flip a coin next week, it could all be the other way around,” Rob says.

Peck Weld

“The name on the side isn’t a product name; it’s my name,” Steve Peck notes with obvious pride when talking about his excavator attachments. Since the summer of 2002, he and his wife Kathy have built the kind of business anyone would be rightly proud to own.

To hear Steve tell it, he has been building stuff and running equipment for most of his life.

He worked as a union operator for many years running big iron. Out in the field, he was often called on to work on the rigs when they broke down. That experience proved invaluable in designing and manufacturing his own products: “Unlike some manufacturers, I know how they will be used and abused.”

Peck Weld began in a 600 square foot shop in Steve and Kathy’s back yard. Steve had been laid off for the winter and decided to see what he could come up with. He started by making clearing rings. Soon he got an order for a bucket and then for a thumb, but the business didn’t really take off until he got a big order from Valley Truck: “Then I had instant orders for more than I could produce.”

So, an operation that literally began in the head and hands of one man grew in a year and a half to a business grossing $1,500,000. Kathy said of those first months, “Steve did everything.” And she does mean everything. “The first three years all the engineering, design, and production all came from here,” Steve added pointing to his head. Of course they began to hire employees including Carlos Velarte who brings 25 years experience in attachment engineering. Even so, when he came on board, Carlos had to change very little of the designs which originally came directly from Steve’s head.

The strength of Peck Weld attachments begins with the welds. You might say that they have built their reputation on them. Steve says with justifiable confidence, “I weld better than anybody.” Because of that, he will hire only the best welders in the business. Only about one in 25 applicants for jobs at Peck Weld can meet Steve’s exacting standards.

That same passion for quality is reflected throughout the manufacture of Peck products. They use only high strength A514 or T1 steel even though their cost for material has risen 100% in the last two years. And now the steel plate is cut with computer assisted torches, a major step up in efficiency from the early years when Steve cut every piece manually.

The quality can easily be seen in the overall design of the products. Peck Weld non-link thumbs gain up to 20% more range of motion than the competition. In most cases, Peck’s progressive link thumbs have the same full range of motion as the bucket.

What about reliability? The 800 buckets sold to CAT had a 0% failure rate over one year. That’s hard to beat. Doing an honest job for an honest price is the business philosophy which guides Peck Weld.

Feenaughty Machinery

Is there some secret to long term business success? Is there some magic formula for surviving and prospering in business for more than 100 years?

Ask Doyle Harris about Feenaughty Machinery’s century of success and you will probably be surprised at his answer. Instead of touting the company in terms of sales figures and units sold, he prefers to talk about the long standing family values which underlie their longevity. Success in his view is measured in much more than bottom line numbers. He measures it in the lives of the employees and in the quality of the companies Feenaughty does business with. Loyalty is a word he uses frequently when talking about all aspects of their operations.

This old fashioned approach to business goes back over 100 years to the beginnings of Feenaughty Company. Doyle’s great-grandfather, William O. Feenaughty, immigrated to the US from Ireland in 1847. At the ripe old age of 14 he was named principal of a Boston school. He was fully qualified for the spot because he had been trained for the priesthood, an opportunity given only to the best and brightest young men of the time.

That was the beginning of his varied career. He ran a grocery store, acquired timber holdings in New York, and even served as sheriff of Howard, New York, for a time. Later, his interest in timber drew him to the Northwest. On a vacation to Oregon in 1901 he made the acquaintance of John Beall. Soon the two had formed a partnership, and the foundation was set for what would become Feenaughty Machinery.

In the early days of the last century they sold farm implements including Cyclone Tile Ditching machines which promised that its users could dig “300 rods” of ditch to a depth of 2 feet per day. That was, of course, if the team of horses pulling it didn’t break down.

Over the years they added logging equipment, Wayne street sweepers, and excavators to their lines. In the 1980’s they were courted by Kobelco, and Feenaughty became one of the first Kobelco dealers in the US. The relationship has proven to a very successful for both parties. Today Feenaughty is one of the country’s leading Kobelco dealers.

More recently Takeuchi came calling, and in February Feenaughty added a full line of Takeuchi machines to their inventory. The addition is just one example of how the company has learned to react to changing conditions. “We are always about adapting, taking risks, but everything we do is grounded in reality” Harris said.

One major reality for their customers is that down time is unacceptable. For that reason, Feenaughty maintains an extensive parts inventory and a full service repair shop. The parts inventory runs to about $3,000,000 per year. The service department operates six service trucks, and is staffed by 15 employees. “We have hired and held on to industrious, honest people,” which translates into a highly qualified work force according to Harris.

He also spoke with obvious pride about the quality of their customer base: “Our customers do really well. Their companies are robust and intelligently run.”

Harris seems most proud of the values which are the foundation of the Feenaughty approach to business. One of those values is to reward loyal employees: “It is really enriching to allow people to support their families and prosper. Everyone who stays with us is almost guaranteed a job at a decent wage with good benefits.” That sort of mutual respect and loyalty pays off for Feenaughty. Many employees stay with the company for decades, providing a stable and experienced work force. “It almost gets in your DNA,” he suggested.

So, is there a formula for long term success? Well, it just might begin with old fashioned values.

Washington School Of The Blind

The Construction Gang has donated $2,385 to the Washington School for the Blind Foundation to support their work with blind students in Washington.  The donation was the first of many regular contributions The Construction Gang will make to local charities as part of our ongoing commitment to support the communities in which we live and do business. Thanks to the advertisers in our May edition for their generous help.

For more information about the work of the Foundation, contact Barbara Sheldon, Executive Director, at 360-696-6321 or – barbarasheldon@wsb1.org