Everyday Heroes
Transcription
Everyday Heroes
Everyday Heroes: Meet Finning's service champions 10 years old: Cat's 797 supertruck still reigns SPRING 2008 www.finning.ca SAME ATTITUDE SMALLER PACKAGE They’re not as large, but they measure ® up. In fact, the new Cat C-Series line offers comfort like the big Cat machines. Noise and dust are reduced thanks to a pressurized and sealed cab – an industry first. The optional air ride seat delivers even more comfort. Plus the wide cab opening makes for easy entry and exit. Count on Finning for the best in dealer support. BE PART OF THE LEGACY. 1-888-finning | finning.ca Big Cat Performance with a small footprint, delivering Outstanding Value. Cat Skid Steer Loader, Fully Equipped $ From as little as 18/day Caterpillar 226B2 Skid Steer Loader Cat Mini-Hydraulic Excavator, Fully Equipped $ From as little as 29/day Caterpillar 303C CR Hydraulic Excavator *O.A.C. Taxes and finance fees extra. Buyout based on fair market value. Pricing based on 48 payment operating lease. 33 58 24 CONTENTS 34 SPRING 2008 Features 19 GREAT PEOPLE 20 Battle the Boom Finning gears up with great company training programs Departments 4 Finning Focus 6 The Groundbreaker Celebrating 75 years of business A town called Penny, At work with John Chew, BC Forest Discovery Centre, A gent and his “mature” Cat, President Jimmy Carter, Success on the slopes 11 By The Numbers 12 Safety First Zen and the art of driving 13 Yellow Iron New products and services from Finning 14 You Must Remember This Check out a pictorial history of an industrial heavyweight 56 Bill’s Business Bill’s gramps gets a tour of the new digs 74 Count On Us Finning finds the future 74 22 Captain’s Log Martin Marsolais can often still be found at the helm of the logging company he founded 27 Dawson Days This family has left its mark all over B.C. 28 Borek Construction Kenn and Rosella Borek built the North, road by runway Ernie Catherwood bought a tug to escape the man. Now he’s the man 33 GREAT SOLUTIONS 34 Everyday Heroes Meet Finning’s early service champions 36 Green is Gold Port Hardy Bulldozing is using the latest methods to reclaim a spent mine 38 Sureway to Success A construction maverick celebrates 35 years 43 KMC Mining Stays Current This company builds on success, staying strong, in lean or plenty 46 Counting the Years Who knew in 1925 that the name “Caterpillar” would become a heavy hitter in heavy equipment? 50 On Target, Off Highway Highland Valley Copper finds Finning solutions to stay strong www.finning.ca 64 31 Try Freedom 53 Sparwood Specials A Finning shop has a good idea, and refurbishes it to make it great 58 The Birth of BIG Kidco brings mining equipment to the city 61 GREAT RESULTS 62 The Birth of the Branch Industry customers were far flung. It was time for Finning to get that way 64 12 Decades Strong Kiewit is a model for big, fair-minded companies 67 A Road to Travel Ron Macmillan likes nothing better than a sweet stretch of road 68 One Big Dump Truck The world’s biggest mining truck is going strong. Who’s gonna argue? 71 Have an Ice Day Here’s the road that gets built every year, just to melt away again Spring 2008 • TR ACKS & TREADS 3 The Finning Focus Great People, Solutions and Results At Finning, we aim to live up to our motto, hoping that the next 75 years will be as interesting as the first by ian reid, president, Finning (Canada) F or 75 years, Finning has provided its customers with great solutions – the product support you need to get the most value from your Caterpillar equipment investment. This commitment to customer support is the cornerstone of the company and stems from the vision of our founder, Earl B. Finning. Finning Tractor & Equipment Co. Ltd. was incorporated on January 4, 1933, in Vancouver with just six employees and the motto: “We service what we sell.” At first, the company grew slowly. In those days, Earl B. Finning travelled across British Columbia, trumpeting the value of Cat’s heavy equipment line. It was a hard sell. Many prospective customers still preferred horses to diesel tractors. As business developed, Mr. Finning opened parts and repair departments. Initially, a single mechanic, Con Gurney, would travel to all parts of B.C., sometimes on horseback, to overhaul equipment. Four years after incorporation, the company’s growth trajectory was established as we opened our first branch operation in Nelson, B.C. in 1937. A period of phenomenal growth fol- tr acks & treads • Spring 2008 lowed, spurred by the production of natural resources in support of the war effort. During the Second World War, Finning was asked to inaugurate a training program for tank mechanics. Later, the courses were modified for Cat equipment and offered internally. The company continues the tradition today, a leader in technical training and employee development. Throughout the 1940s and ’50s, business continued to expand as Caterpillar’s product line broadened. Product support was delivered to customers’ doorsteps through a growing number of branches. Resident mechanics often travelled to site by boat or float plane. The determination to add value to Caterpillar products was paying off – a mid-1960s customer survey revealed that Finning’s parts market share exceeded 80%. The 1960s boom saw our customers undertake major dam and highway construction projects. Finning kept pace through an ambitious expansion program. Growing markets and the need to access additional capital moved Finning to become a publicly traded company in 1969, a rare step for a Caterpillar dealership. To this day, Finning remains one of only a handful of publicly held Caterpillar dealers. In 1976, the company expanded into northern Canada when it was awarded the Yukon dealership territory. In the 1980s and ’90s, Finning took its “we service what we sell” formula international, acquiring dealership territories in the United Kingdom and South America. Meanwhile, in Canada, Finning acquired the R. Angus Caterpillar dealership in Alberta, making us a key supplier to the oil and gas industry and the oil sands. Of course, none of these accomplishments would have been possible without you, our customers, many who have been with us since the beginning. That’s why we’ve taken the opportunity with this issue, not just to profile our own heritage, but to look back at how your businesses and projects developed. A special thank you goes to those customers who helped us put this volume of Tracks & Treads together. On behalf of our outstanding Finning (Canada) team, past and present, let me say it’s been an honour to serve you as a trusted business partner. You’ve helped make our 75th a great celebration indeed! www.finning.ca Letters & Feedback SPRING 2008 Volume 48, No. 1 PUBLISHER Ruth Kelly rkelly@venturepublishing.ca ASSOCIATE PUBLISHER Daska Davis ddavis@venturepublishing.ca EXECUTIVE EDITOR Jeff Howard jhoward@finning.ca EDITOR Mifi Purvis mpurvis@venturepublishing.ca OLD TIME’S SAKE: We had a great time at Finning headquarters in Edmonton prepping this issue. We opened the vaults, pawed through scrapbooks and rifled through junk drawers. We came up with a treasure trove of Finning and Caterpillar nostalgia. Hope you have as much fun leafing through this weighty, celebratory issue of Track & Treads as we had pulling it all together. Jeff Howard Publications manager Finning (Canada) ART DIRECTOR Charles Burke cburke@venturepublishing.ca ASSISTANT ART DIRECTOR Catherine Lizotte PRODUCTION MANAGER Vanlee Robblee PRODUCTION Betty-Lou Smith, Christina Forcade CIRCULATION COORDINATOR Amanda Dammann circulation@venturepublishing.ca ADVERTISING REPRESENTATIVE Anita McGillis amcgillis@venturepublishing.ca CONTRIBUTING WRITERS Robin Brunet, David DiCenzo, Phoebe Dey, Katherine Fawcett, Jeff Howard, Melody Hebert, Cait Wills, Tricia Radison, Jim Veenbaas, Lisa Ricciotti, Keith Haddock, Ryan Smith, Caitlin Crawshaw, Jason Unrau CONTRIBUTING PHOTOGRAPHERS AND ILLUSTRATORS David Moore, Chris Pyle, Chip Zdarsky Tracks & Treads is published to provide its readers with relevant business, technology, product and service information in a lively and engaging manner. Tracks & Treads is published for Finning (Canada) by Venture Publishing Inc. 10259-105 Street Edmonton, Alberta T5J 1E3 Phone: 780-990-0839 Fax: 780-425-4921 Tell us what you think Tracks & Treads would love to hear from you. Tell us what you think of the magazine’s stories, columns and look, so we can improve it and provide a more interesting read. Contents © 2008 by Finning (Canada) No part of this publication should be reproduced without written permission. Send your comments to executive editor Jeff Howard by e-mail at jhoward@finning.ca or the old-fashioned way to: Jeff Howard, Tracks & Treads, Finning (Canada), 16830 – 107 Avenue, Edmonton, Alberta T5P 4C3 www.finning.ca www.finning.ca Spring 2008 • TR ACKS & TREADS 5 News & Reviews BY DAVID DICENZO Paint it Yellow, Harry Harold Hewlett would never let a little thing like age get in the way of his passion for Caterpillar machines. At 83, the Kelownaborn Hewlett still enjoys plugging away on the extensive fleet of yellow iron on his ranch in the Salmon Valley area, maintaining a definite sense of humour all the while. “Like someone I know said, ‘Hewlett, you’re old as dirt,’” jokes the energetic octogenarian. Hewlett was on born April 5, 1924, almost 20 years after his parents came to the Okanagan Valley. His father was a logger and a fruit farmer and Hewlett began following in dad’s footsteps. Cat equipment has always been part of the equation when it comes to his busy work life, which has included time logging, farming and even a lengthy stint as a mechanic in Prince George. “I’ve had Cats for the last 60 years,” Hewlett says. “I’ll tell you what; there is no machine like a Caterpillar. I’ve had very good luck with them.” Hewlett lost a leg in a farming accident in the mid-1970s but neither that, nor his advancing age, have slowed him down. Harold Hewlett 6 TR ACKS & TREADS • Spring 2008 The father of four (grandfather of eight and great-grandfather of nine children) never turns down the chance to get outside and work on his Cats, a few of which have been around for almost as long as he has. Hewlett is proud that he’s self-taught when doing any maintenance work on the machines. One of his latest tasks was putting in new brakes and replacing the steering clutch on his 3T Caterpillar tractor, circa 1941. “I’ve cleared thousands of acres of land with it,” Hewlett says of the old-school iron. Hewlett has been a fixture at Finning’s Prince George branch for decades, taking the 25-mile trip in whenever he needs a part. “He’s a very captivating fellow,” says Finning’s Mike Hackman. “He certainly doesn’t seem his age.” Hewlett’s definitely a popular guy when a big snowfall hits the area. That’s when he gets calls from the neighbours to fire up his D7, also from the 1940s, to come clear the white stuff. “Last winter, I plowed 25 miles of road with it,” Hewlett says. His collection of Cats has prompted a few requests from family. One son simply asked that Hewlett keep at least one of the machines in good working order. “He said, ‘You’ve got to keep one of these Cats running so when you die, I can bury all of the stuff,’” Hewlett says with a laugh. “We’ve got about 100 tons of it.” The other request is from wife Doreen. With all of the machines already on the property, Hewlett isn’t allowed to paint anything else yellow. President Jimmy Carter President Carter is now a Finning man. To be clear, the James Carter that recently joined Finning International Inc.’s Board of Directors is not the same peanut aficionado tasked with running the free world in the mid-1970s. But this Jim has loads of expertise. In October, Finning announced the addition of Mr. Carter, the former President and COO of Syncrude Canada. “We are extremely pleased to welcome Jim to Finning’s Board of Directors,” Chairman Conrad Pinette said in a release. “He has played a prominent role in the growth of Syncrude and in the development of Alberta’s oil sands as well as the community of Fort McMurray.” Carter had a memorable year in 2005. The former graduate of both the Technical University of Nova Scotia (engineering mining) and the Harvard Graduate School of Business Administration (advanced management) was named Resource Person of the Year by the Alberta Chamber of Resources and was inducted as a Fellow of the Canadian Academy of Engineering. He also received an Alberta Centennial medal from the Province. www.finning.ca GROUNDBREAKER Cats are Forever In 1957, Penny, B.C. native, Clarence Boudreau, shelled out $22,000 for a brand new D6 Cat crawler. It’s been plugging away continuously since. To put it in perspective, that’s when Elvis was thin and new, men had not yet landed on the moon and the business editor of Prentice Hall books said that interest in computer data processing was “a fad that would not last the year.” When Boudreau bought the durable Cat from Finning rep Bernie Moore over half a century ago, he was a cattle rancher. He planned to use the tractor for clearing land. But soon he and his wife, Olga (they’ve produced five children, 14 grandchildren and an incredible 11 great-grand kids), gave up on cattle ranching. “We quit that a long time ago,” says Boudreau, also a former forest warden and operator of a salmon hatchery. “We were using the Cat to support the farm and we decided that we could do just fine with the Cat, without the farm.” The iron has certainly come in handy over the years and continues to run smoothly. Boudreau notes that he was still plowing snow with it in late January, something he also did in an official capacity for the Department www.finning.ca of Highways from 1957 through 1996. But the D6 is most active in the summer. That’s when Boudreau works on a road connecting the tiny town of Penny (population six, located between Prince George and McBride) to the outside world. In 1994, the year before a scheduled reunion for Penny’s past residents (the town once had a sawmill and 675 people), Boudreau began the project. He and a nephew started building a 16kilometre road, at his own expense, to connect with another road near Highway 16. “We just keep improving the road,” Boudreau says. “We’ve added about 1,600 truckloads of gravel. Everybody uses it.” Boudreau admits he’s also had his share of follies with the D6. On one occasion, a mudslide almost plunged it into the Fraser River, which would have been the second time it got submerged. The first time came in the early 1960s when Boudreau was building an ice bridge across the Fraser River for logging purposes. “I had the ice bridge built just about to the bank on the other side,” he says. “I turned my Cat around, I backed it off the end of the bridge and there was a hole right there. Plunk, I was in the water. I managed to get the blade on the end of the bridge and hold it up. I winched it out of there. I was pretty lucky because there were no other machines around.” The rugged machine was fine. There was also the time that Boudreau managed to muck up the nearby railway while he was hauling logs. Luckily, he and some friends rounded up some tools and fixed the track before the next train. “We ripped everything up, pulled the spikes out, put the thing back down and then gauged the track,” Boudreau recalls. “We went home and listened until the train came. It went by in one piece.” Boudreau can’t necessarily explain why his D6 has lasted more than 50 years other than noting, “It’s obvious they made a very good Cat.” He did overhaul the motor about 20 years ago, though he notes that the transmission, and even the oil inside of it, is original. Like Boudreau himself, the Cat D6 has been running strong for many years. “It’s a matter of which one of us plays out first,” he says. Pretty Penny Penny, B.C. was officially added to the map in 1916, the year the post office opened. The town’s sawmill met its demise because of a combination of the decline of large timber in the Upper Fraser River Valley and because of the centralization of the pulp and lumber industries in nearby Prince George. http://web.unbc.ca/upperfraser/ towns/penny/literature.htm Spring 2008 • TR ACKS & TREADS 7 Island Builder It’s been 53 years since John Chew incorporated his business, Chew Excavating Ltd. In those days, Chew says a handshake was good enough to seal a deal. While plenty has changed in the construction world over those five-plus decades, the influential Chew hasn’t altered his approach. “Customer service was how we built the business,” says the 80-year-old native of the Municipality of Saanich, a suburb of Victoria, B.C. It’s the same today, though the scope of Chew’s work has increased. His footprints are all over Vancouver Island, where Chew’s employees have completed a variety of pipe laying, road building projects and a lot of sewer system work for municipalities. Diversification has been instrumental to his success. And Chew has played a huge role in actually growing the construction industry in the area. He would hire operators, get them experience and they would eventually branch off on their own to compete for jobs. “It’s the nature of the beast,” says Chew. “You apprenticed people, teaching them how to run machines, teaching them how to run businesses. Then they grow up, like we all did.” “He started three-quarters of the contractors here in Victoria,” says Finning’s Gregg Whitson. “He’s very creative. He’ll step out and do things that other people won’t. I wish I had his guts.” The father of four children and four grand 8 TR ACKS & TREADS • Spring 2008 kids learned the value of hard work early, by helping out on the farm with his own dad, a market gardener. In the initial years of running his business, Chew was definitely hands on, happily operating the backhoe by himself. By the 1960s, he had begun his lengthy relationship with Finning by purchasing a variety of machines. “We did almost all the excavations in the city of Victoria in the ’60s and ’70s,” Chew recalls. “We had a lot of loaders and blasters. We bought the first 955 from Finning and 933s, and 977s.” He isn’t quite sure of how many Cats his companies operate today, though. “Quite a few,” he says with a laugh. These days Chew, who also owns Victoria Harbour Ferry, leaves daily operations to his son-in-law Bruce Dyck. After a lifetime of hard work, the bigger concern is planning a few Chinook salmon fishing trips per year or shaving a couple strokes off his handicap when golfing with his wife. Those recreational excursions are well earned, given Chew’s commitment to his employees and the region as a whole. In April 2007, he was given a Lifetime Achievement Award by the Greater Victoria Chamber of Commerce. “You’ve got to give back t o t h e c o m m u n i t y, ” says Chew, “otherwise, what have you got?” Finning Family Finning’s operations in Alberta got a big boost late last year with some good news on the business front. On November 27, Finning International Inc. announced that it had acquired Collicutt Energy Services, a leader in the Canadian oilfield service industry, known for its servicing and fabrication of natural gas compression equipment and electric power generation in both Alberta and British Columbia. “The Collicutt acquisition helps us address our needs for facilities and people. It will boost our ability to meet the growing demand for service from our customers, particularly in the mining, heavy construction and power systems industries,” Finning (Canada) president Ian Reid said in a recent release. “We welcome the Collicutt employees to our service teams.” Shareholders feel the love, too. “This transaction provides all Collicutt shareholders with an attractive premium to recent trading values,” Steven Collicutt, president and chief executive officer, said last November. Collicutt shareholders received $9.75 per share with the www.finning.ca GROUNDBREAKER Gareth Sine Pedal to the Medal Canadians have a long tradition of hurtling themselves down icy mountains at breakneck speeds. While stars like Ken Read and Steve Podborski helped usher in the era of the “Crazy Canucks,” a whole new generation of Canadian skiers are showing the same type of courage. And this group of thrill seekers will be getting a little help from Finning (Canada). In October, Finning and Caterpillar of Canada Inc. signed a three-year, $600,000 partnership with Alpine Canada Alpin to assist with financial resources as our skiers continue working towards making the country one of the best in the world in time for the approaching 2010 Winter Olympics in Vancouver. “Finning and Caterpillar are providing much needed additional financial resources to support our teams, our programs, and our goal of becoming the best in the world at every level,” said Read, now the Chief Executive Officer, Alpine Canada Alpin. “We need financial, technical and human resources to ensure we keep pace with the ski racing world. This partnership with Finning and Caterpillar will really help us and we are very thankful that these two strong Canadian corporate partners have joined our team.” The support will help make a powerhouse squad just that much better. Canada is already coming off its best World Cup racing season ever. Last year, the national alpine and para-alpine athletes had an incredible 43 World Cup podium appearances and won a World Championship medal, but there’s more to do. “We expect this contribution will help put Canada’s elite alpine skiers on the podium, and will build strong grassroot programs so amateur athletes have the backing they need to realize their potential,” said Jon Carman, President of Caterpillar of Canada Ltd. Canuck skiers, such as Gareth Sine, have embraced the deal. The Calgary native, who had a list of impressive results last season and in the early going of the 2007/08 campaign, has been proudly donning the Finning Cat logo. “As an Albertan, I am particularly thrilled to be wearing Finning and Caterpillar headgear on my helmet for the 2007/08 racing season,” Sine said last October. “Like Finning and Caterpillar, my focus and dedication is centered on achievement and excellence.” sale of the company. “Finning is a worldclass company,” Collicutt says. “Finning will grow the scale and scope of the Red Deer operations in the years to come.” What acquiring Collicutt means for Finning • About 450 more employees • More than 200,000 square feet of operational capacity in Red Deer • The capacity for consolidated new equipment preparation work • A “Centre of Excellence” for mining and heavy equipment overhaul work • Freeing service personnel in existing Finning branches for additional customer service work www.finning.ca PUT ’ER THERE: Steven Collicutt shakes on it with Finning president Ian Reid Spring 2008 • TR ACKS & TREADS 9 Move Over, Paul Bunyan Vicki Holman fondly recalls her first few weeks as manager of the BC Forest Discovery Centre. The 100-acre operation, located two kilometres north of Duncan on Vancouver Island, offers a detailed look at the evolution of a provincial industry that Holman calls “the backbone of the economy.” “I remember when I first started this job and going through the exhibits, I followed a family whose grandfather was narrating while they walked through the bunkhouses,” she says. “He told them the story of when he was in camp and how he slept in a bunk like that and worked in the shop. He had a sense of pride, and we have a role to play in keeping those stories alive.” The BC Forest Discovery Centre has been doing just that since it first opened in 1964 as the Forest Museum Park. Gerry Wellburn, an Englishman who moved to Victoria with his family after the turn of the century, donated the original collection of artifacts and logging machines housed at the centre. Wellburn, who was one of the first loggers in the area to use Caterpillar equipment, recognized the changes occurring in the industry and began collecting the various tools of the trade. By 1974, the BC Forest Museum Society took over the centre, which is now funded through a combination of government support, fundraising and private donations. Approximately 30,000 visitors per year pass through to see the wetlands, exhibits and mature second-growth forest complete with trails on a dynamic piece of land. Many of the machines on display at the centre – open from Easter to Thanksgiving and then once again at Christmas – are vintage Cats, including loaders, D7s and D6s and even a 1930 Model 20 tractor, which Finning borrowed to display at logging shows throughout 2007. A sweet 1910 steam train takes visitors on a tour of the grounds. “They gave me a tour,” says Rob Sarich, Finning’s products and services sales manager for Vancouver Island. “There’s a ton of old stories there about machinery and the history of the Island. With each piece, there’s a story.” Location, location In 1964, an appropriate location was identified for what would eventually become the site of the BC Forest Discovery Centre. A six-hectare piece of property south of Drinkwater Road was chosen because of its visibility from the Island highway and historical connection to the Cowichan Valley. The site was a mink farm but more importantly it had been the location of the Cowichan Valley’s first public building – a combined schoolhouse and chapel, erected in 1863. “To me, the coolest part about this is that artifacts aren’t just sitting out there in the forest,” says Holman. “You could flash them up and start them and if you wanted to, you could actually do some land clearing.” Volunteers, many of them retired loggers, are key to the centre’s ability to connect the past to the present. The centre offers educational programming available for primary, elementary and high-school students. “There’s a real opportunity to tell the historical story and talk about where forestry is going in the future and why it’s important to value the forest,” she says. The BC Forest Discovery Centre has become even more meaningful in recent times with the logging industry facing serious challenges. Devastating forest fires and the unrelenting march of the tree-killing mountain pine beetle have transformed the industry, making it that much more imperative to remember the rich tradition and role it has played in shaping British Columbia. “Here on the coast, guys that logged in the ’30s, ’40s and ’50s up to the present day, they’re like folk heroes,” says Sarich. “You really get a sense of that at the BC Forest Discovery Centre.” Visit discoveryforest.com for more information on the centre. 10 TR ACKS & TREADS • Spring 2008 www.finning.ca GROUNDBREAKER By the Numbers Height in feet of a Caterpillar 797B haul truck tire: 13 Tire weight in pounds: 10,000 634 1,823 Number of explosive devices CIA dogs are trained to sniff out: Number of video game-like virtual training systems introduced by Caterpillar for its equipment: 19,000 Time it takes a man to change a diaper, in seconds: 96 125 A woman: www.finning.ca 1,800 Number of assassination plots Fidel Castro claims to have survived: Number of Guitar Hero games stocked at Michigan’s Rochester Hills public library: 4 Number of gallons of gas held in the tank of a 797B: Price of J.Lo’s new Italian leather and snake skin trim diaper bag: $1,250 Spring 2008 • TR ACKS & TREADS 11 Story by mifi purvis illustration by CHRIS PYLE Safety First Drivers are eating bagels, rushing to hockey practice and thinking about the latest events at work. but They should be thinking about driving Zen and the Art of Driving “The first thing to do is to stop calling them ‘accidents,’” says Dr. Louis Francescutti; he’s talking about traffic safety. “It perpetuates the notion that there’s something unavoidable about them, and that’s not the case. Call them collisions, or crashes, but not accidents.” It’s probably something he’s said loads of times before, but his comments sound spontaneous, despite some faint interference on the telephone line. It’s possible he’s on a cell phone, but you can bet that, if he is, he isn’t driving. Francescutti is an Edmonton emergency physician and a champion of cell phone free driving. His cell phone peeves fit into a wider category of driver distractibility and injury avoidance. “Injuries are almost always avoidable,” he says, “and they are the most under-recognized public health challenge.” Safer driving is something that most companies want their employees to undertake, not just at the wheel of the company truck, but also once they clock out and climb into their own vehicles. “Many companies have excellent safety programs,” says Lacey Hoyland, injury prevention coordinator at Edmonton’s Capital Health. “But it’s not onsite that most collisions are happening, it’s on weekends.” Emergency physicians, such as Francescutti, can attest to the surge of traffic injuries and fatalities, especially on long weekends. Yet according to Francescutti, safer driving is relatively simple. “Follow the rules, don’t use a cell phone while driving, don’t drive intoxicated, slow down,” he rattles off. “When you’re driving,” Francescutti says, “you should be doing only one thing: driving.” 12 tr acks & treads • Spring 2008 It’s that Zen-like commitment to dwelling in the moment, concerned with conditions at hand and beyond distractibility, that many of us find difficult to achieve behind the wheel. How many times have you arrived home with little recollection of the journey? “If that’s the case, you’re not driving safely,” Francescutti says flatly. Or worse, how many times have you burned rubber because you were eating, or rocking out to whatever’s on the stereo, or mediating a fight, via the rear view mirror, between your kids? Francescutti’s stay-on-task mantra is echoed by Capital Health’s Hoyland. “It’s a driver’s increased level self awareness and decreased distractibility that improve his driving,” she says. Hoyland adds that drivers should set out in plenty of time. Running 10 minutes behind schedule makes for late, irritable drivers, who focus on shaving seconds off the journey rather than focusing on the journey itself. And driving is a more difficult task than we acknowledge – ask anyone who has learned to drive in their 30s. Most Albertans grew up in cars, learned to drive as teens. “There’s a complexity to driving that we lose track of,” says Hoyland. “And there’s more going on in traffic than there was 20 years ago. Signage has increased, there are more traffic lights and the volume of traffic has increased.” Despite Francescutti’s to-do list for safer driving, injury prevention experts are the first to say that general admonishments, such as “drive safely,” have little effect on people’s behaviour. “People respond more positively to concrete tips and suggestions,” says Hoyland. Clear, specific messages help drivers retain and integrate safer driving tips. “Slow down,” for example, is less effective than “Slow to 50 km/h in construction zones or fines are double.” Francescutti has an activist’s approach. He believes that an aggressive public awareness campaign, coupled with a hefty endowment to kick-start it, and public accountability will decrease collision-related injury and death. “Why not make public health ministers accountable? If we did that, there would be a political will to improve safety,” he says. He cites the experience of the State of Victoria, Australia. Victoria has undertaken these steps and seen dramatic de- creases in collision rates and injury and death by collision. Many companies, too, are trying to make an impact on employees with their safety policies. Schlumberger, a global oilfield supply company, has seen its driver safety record improve to all-time bests after the implementation of a company-wide driving training program. Likewise, Finning continues to fine-tune its driver safety policies, with such initiatives as the wireless policy, banning the use of cell phones while behind the wheel, and providing guidelines on how to avoid becoming the victim or perpetrator of road rage. “The message we’d like our people to take home,” says Tom Petras, Finning’s safety manager, “is that they should be concentrating on driving, and nothing else, when they’re behind the wheel.” www.finning.ca yellowiron New Products and Ser vices from Finning For all your insurance needs For contractors and equipment operators, Finning offers a multiple-line insurance program for fleet auto liability; commercial general liability; equipment, buildings and contents; bonding and many other miscellaneous forms of insurance. Flexibility, insurance expertise and an understanding of the heavy equipment industry enables us to customize insurance packages for any size of business. Call Finning Insurance Services today at 1-888-FINNING. Caterpillar machines are built to be rebuilt The extensive Caterpillar Certified Rebuild program incorporates the very latest Cat technology and critical engineering updates into your machine at a fraction of the cost of buying new. After a thorough evaluation, including more than 350 tests and inspections and the automatic replacement of approximately 7,000 parts, you get a like-new machine and warranty. The WAVS of the future The new, versatile Caterpillar Work Area Vision System (WAVS) provides machine operators with views from as many as three cameras. While not intended to be used in place of direct views or installed mirrors, WAVS is a great asset for operators at any level. Developed specifically for rugged applications and environments, WAVS is simple to install on any machine and is easy to use, offering powerful capabilities and features to improve productivity. Grading made easy The AccuGrade Laser Grade Control System, a new technology tool from Caterpillar, allows dozer operators to grade and fill with increased accuracy without the use of traditional stakes or grade checkers. Ask your Finning representative about the AccuGrade System that can significantly improve the productivity and accuracy of grading equipment by as much as 50% over conventional methods. www.finning.ca Spring 2008 • tr acks & treads 13 We service what we sell In 1928, Earl B. Finning moved to Vancouver and became a partner with Morrison Tractor and Equipment Ltd. Four years later, Morri- son relinquished his interest and Finning Tractor & Equipment Company Ltd. was born on January 4, 1933. A staff of six set up shop at 940 Station Street in Vancouver. From day one, Earl Finning’s operating philosophy could be captured in five simple words: “We service what we sell.” IN TOUCH WITH INDUSTRY: Earl B. Finning meets with B.C.’s budding logging magnates at Loggers Congress in 1946. The event was held at the Banff Springs Hotel BUILDING RELATIONSHIPS: A customer is greeted by a furry Finning sales rep – Earl B.’s famous Irish Red Setter, Pat The 75-year war against downtime Product support innovations through the decades kept Finning customers going by reducing equipment downtime. These innovative programs include custom track service, preventive maintenance, guaranteed bid, planned component replacement, guaranteed cost per hour, scheduled oil sampling, customer support agreements and many more. SERVICE BRIGADE: Finning mechanics get ready for a parade 14 tr acks & treads • Spring 2008 www.finning.ca Meet the customers’ needs The 1960s boom saw Finning customers undertake major dam and highway construction projects. Machine populations were also growing in other areas of B.C. In response, the company launched a capital expenditures program, moving to a new head office and service facility on Great Northern Way. In 1965 Earl Finning passed away and, four years later, Finning Tractor & Equipment Company Ltd. became a publicly traded company, a rare move for a Caterpillar dealership. TAKE FLIGHT: The Finning plane heads out on a service call Serve where the action is Finning continued to expand throughout the 1940s and ’50s as Caterpillar’s product line broadened. Finning technicians delivered product support to customers’ doorsteps, often making field calls in float planes. And mobile parts depots, stocked with more than 500 different items, supported customers in remote areas. Caterpillar introduced 16 new products in 1959 and 1960. With a new engine plant at Mossville, Illinois, Caterpillar intended to become the world’s largest manufacturer of diesel engines. Finning grew in response. SIGN OF THE TIMES: To make the move to new premises on Great Northern Way, the Finning sign is removed at 940 Station Street LOOK WAY UP: A high rigger for the Hillcrest Lumber Company at work at Mesachie Lake, near Cowichan on Vancouver Island in 1948 PLAY THE PIPES: Mannix Ltd. Cat pipelayers on the West Coast Transmission Line project, 1971 REMEMBER WHEN… www.finning.ca Spring 2008 • TR ACKS & TREADS 15 STRONG IN NUMBERS: In the first phase of the $250-million Coquihalla Highway project, three 35-ton trucks, part of a 450-piece Cat army of machines, help relocate railway right-of-way PREVENT DEFENCE: Finning’s PM plan helps customers avoid after-failure repairs DOCKSIDE SUPPORT: A Finning hose van makes a stop at the docks in the 1980s STEPPING OUT: Finning made its UK debut in 1983 Small moves squelch big trouble Finning’s field service personnel are equipped with a hidden toolbox of knowledge and solutions that have evolved through 75 years of customer support. Preventive maintenance service was introduced in the 1960s and has become an essential part of Finning’s service offering. “Our customers realize the value of service,” said senior serviceman Bruce Phillips, 1963. “Small adjustments prevent major troubles and our customers see the benefits.” Today, Finning’s resourceful field technicians continue the tradition. Armed with laptops, they’re plugged into a vast knowledge network that helps them provide the right solutions. Go international When B.C. resource industries took a downturn during the recession of the early 1980s, Finning remained in the black, and stepped into the global marketplace, acquiring the rights to represent Caterpillar in Western England, Wales and Scotland in 1983. The company purchased two Caterpillar dealerships in the United Kingdom: Bowmaker (Plant) Ltd. and Caledonian Tractor and Equipment Co. Ltd., which merged to become Finning Limited. REMEMBER WHEN… 16 TR ACKS & TREADS • Spring 2008 www.finning.ca CAT POWER: A Cat 3406 engine powers this truck for Voyageur Construction SERVICE GOES NORTH: Yukon’s placer mines still define the northern territory Serve the North “In this business you have to be where the action is. It’s an expensive way to operate but there’s no doubt about the benefit to the customers,” said executive board chairman Maury Young on the expansion of Finning’s facilities in the Yukon in 1980. That philosophy continued as Finning broadened its geographic base in western Canada in 1989 by acquiring the R. Angus Caterpillar dealership, a company that had long served as a key supplier to Canada’s oil and gas industry in the Northwest Territories and Alberta, most notably the massive oil sands projects in the northern part of the province. Each year, Finning employees rise to the North’s extreme logistical challenges. www.finning.ca TWEAK IT: A Finning truck engine technician makes adjustments Spring 2008 • TR ACKS & TREADS 17 Expand international presence In the 1990s, Finning continued looking for new opportunities in other countries, acquiring the Leverton dealership in England and Gildemeister S.A.C in Chile in 1993. On April 25, 1997, the company changed its name to Finning International Inc. A year later, the head office for Finning (Canada) relocated to Edmonton, Alberta. In 2003, Finning acquired three more South American territories: Macrosa del Plata S.A. in Argentina; Matreq Ferreyros S.A. in Bolivia; and General Machinery Co. S.A. in Uruguay. CHILE WORK: Finning is at work around the world, including this mine in Chile A NICE BUNCH A FELLERS: Finning technicians assemble a TK 1162 feller buncher with skill and ease “Great People, Great Solutions, Great Results” The company Earl B. Finning founded with “damn few dollars and a lot of courage” back in 1933, continues to succeed. Today, 13,000 Finning employees, working in Canada, South America and the U.K., celebrate 75 years of operation, thanks to a strong tradition of great people, great solutions and great results. Finning is positioned for even greater success in the future. IN TUNE: Finning technicians are plugged in to today’s technology REMEMBER WHEN… 18 TR ACKS & TREADS • Spring 2008 www.finning.ca SIXTIES SERVICE: Finning’s Jerry Holmes chats with Norm Jacobsen at the University of British Columbia research forest, near Haney, B.C., in 1961 www.finning.ca Spring 2008 • TR ACKS & TREADS 19 A thriving economy is no reason to moan. Finning training programs help solve the skills shortage Story by Jeff Howard Battling the Boom roblematic as today’s skilled labour shortage is, it’s noth ing new. During boom times, it’s just what happens. Take the 1960s – back when things were groovy, pulp mill, dam and highway projects were on the go and com panies were vying for skilled tradespeople. Of course, Finning had its own needs. But by then, it already had nearly 30 years’ experi ence developing a workforce to meet custom er repair and maintenance needs. The commitment to equip both its own staff and the industrial customers it served with technical training resources has been a hallmark of the company, all the way back to the Second World War, and continues today with programs such as ThinkBIG, a partner ship between Finning and NAIT to train heavy equipment technicians. 20 tr acks & treads • Spring 2008 The focus on training began with the need for tank mechanics. In 1942, the army asked Finning to design and administer a crash course. Frank Davies, Finning’s first part-time trainer, taught army personnel to dismantle and reassemble D7 and D8 trac tors at Finning’s Station Street headquarters in Vancouver. Then he sent the budding military techs to logging camps for field experience. For its contribution to the war effort, Finning received the Canadian Armed Forces Award, the highest recognition that can be given to a civilian organization. After the war, fishing companies began to repower fleets; Finning scrambled to recruit staff to handle the tidal wave of engine instal lation and repair jobs. To meet the need, the company set up a training program. Bev Davis, who joined the company in 1947 as a 20-year-old war veteran, describes the marine training program. “We were called ‘improvers’ in those days; we had Department of Veterans Affairs credits that subsidized wages and helped us reintegrate into the workforce. Frank Davies was our mentor and we were his boys. He had us work in the shop until he figured we were ready for the field.” Eight recruits were hired into the marine training program annually. However, by 1954 a new area was becoming an important part of Finning’s business – used equipment. Again, there was a shortage of technicians. Once more, Finning trained 24 mechanics in-house to meet the need. By 1957, the writing was on the chalk board. The company would need to develop an ongoing training program, and Frank Davies was finally hired on full-time. The www.finning.ca company was asked to take on the administration of the province’s first four-year heavy duty technician apprenticeship program, because the Vancouver Vocational Institute had neither the instructors nor the facilities. The strategic move included government supervision and assistance. Reporting on this development, Truck Logger magazine described Finning training as “the most ambitious industrial training program in the province … Several construction and logging firms have taken advantage of the Finning program to include some of their mechanics in the schedule. The program will do much to alleviate the [labour] shortage.” Four years later, Finning was able to advertise the merits of its experts. Bev Davis, the former “improver,” had moved into service management in Vancouver. In a letter to customers, he wrote, “There are 159 Finning mechanics (or technicians) at your service throughout B.C. They’re trained experts with special tools and proper working conditions. They’re the men who give you the best job, worth the little bit extra they may cost.” In 1966, Finning’s population of technicians had expanded to 434. From 1964 to 1966, mechanical staff in Vancouver had doubled. It was a reflection of a business surge at Finning and, more generally, in B.C. Jack Rollins, one of the company’s original six employees, said at the time: “The supply of technicians doesn’t come near to meeting the demand.” During a 1966 interview with Western Business and Industry magazine, Finning president Maury Young said Finning wouldn’t lower hiring standards to fill shortfalls. “We don’t choose to go this route no matter how critical the shortage becomes,” he said. “We feel it’s in our interest to do fewer jobs well, rather than turn out poor work. The solution lies in extensive in-plant training.” That proposed solution was put into action, and Finning became Canada’s first private company training school, by the federal government’s definition. The Journal of Commerce reported in 1973 that Finning was “a company fast earning a national reputation for its ability to train people.” Also in 1973, Finning launched B.C.’s first parts apprenticeship program. The three-year program received the blessing of the apprenticeship and industrial training branch of the provincial labour department and the International Association of Machinists and Aerospace Workers. By the end of 1977, more than 150 companies from across Canada had sent personnel to take Finning courses. Erroll Inglis, program head, said, “The biggest percentage of our business comes from industry, asking us to upgrade the skills of their employees.” Today, amidst another labour shortage, Finning continues to focus on developing well-trained employees, able to provide optimum customer service. The company employs 384 apprentices in six different fields: heavy equipment, parts, machining, electrical, welding and millwright. Last year, Finning’s team of 22 technical trainers delivered nearly 400 technical training classes to more than 1,200 Finning employees. In 2007, nearly 80% of employees had participated in some kind of company training. Finning also offers customer and operator training. “Our success depends on people who can listen to our customers, solve problems quickly, focus on quality and take initiative,” company president Ian Reid says. “Therefore, training and development will continue to be our highest priorities.” Not even a tank could stop this 66-year training tradition. TRADITION OF LEARNING: Frank Davies, (dark suit), conducts a course for Finning customers and employees. Below: Finning trainer Lyle Troudt continues the tradition www.finning.ca Spring 2008 • tr acks & treads 21 t, or. Righ process e (centre) C 2 2 3 h a Cat n Jaym olais wit grandso in Mars on Calvin and rt a M : AN is s MAIN M ictured with h p Martin is BOYS AT PLAY: Martin’s sons Calvin and Karrey, then pre-teens, get a taste of the working life HARD AT WORK: A 535B tears throu gh the trees 22 TR ACKS & TREADS • Spring 2008 PHOTOGRAPH OF 535B BY ALEX ZAN DER PHOTOGRAP HY nn Wilkin Duboski, left, and Gle ADAPTATION : Glenn m stroker boo e ckl knu y gua are shown with a Tan www.finning.ca REMEMBER WHEN… Captain’s Log Martin Marsolais has been at the helm of a logging company for so long that it just won’t let go STORY BY ROBIN BRUNET t seems hard to believe that it happened so recently, but it wasn’t until the 1950s that power saws became widely available to loggers. That was shortly after Martin Marsolais moved from Alberta to Prince George, B.C. Many of Marsolais’ logging colleagues dismissed the new technology. At the time, like Marsolais, they relied on one-man Swede saws to fall trees and buck to length. “They thought power saws would never catch on and they said the new saws were a waste of time,” says Marsolais. “For me, the first power saws were heavy, but I thought they were the way to go.” Marsolais, who has witnessed every conceivable change to the industry he first entered as a teen, adds, “I’ve always liked new machines and technology. I’ve always been willing to give new ideas a chance.” And that’s one of the main reasons why Martin Marsolais and Sons Ltd. (MMS), founded in 1966, has become one of the busiest and most respected logging contractors www.finning.ca in the Prince George region. As one of two prime contractors for Lakeland Mills Ltd. and a contractor to private wood owners, MMS harvests about 200,000 cubic metres annually and uses no less than 16 pieces of Caterpillar equipment and four trucks with Cat engines to get the job done. Martin’s son Calvin, who bought into the company in the 1990s with his brother Karrey, is equally enthusiastic about using new – and sometimes unlikely – types of equipment if they prove reliable. For example, the company was the first of its kind in Western Canada to purchase a knuckle boom stroker. “Over the years we’ve gotten strange looks from colleagues about the equipment we’ve tried out, but if it improves our operation, then of course we’re all for it,” he reasons. Martin and Calvin Marsolais also share another characteristic that has been equally instrumental in the company’s success. “They are meticulous about their finances,” says Jason Knutson, customer account mana- ger for Finning’s Prince George office. “They know where every last penny goes, and they know how much it costs to run each machine in their inventory, right down to costper-hour. They’ve got business smarts by the bucket load.” “It’s another thing I picked up from dad,” says Calvin. “He always stressed the importance of finances to me, even when I started out in the company as a high schooler making extra money during summer vacation.” Family business is endemic to the logging industry. Subtle touches mark this as a family affair to guests: their tendency to holler to each other from their respective offices; their dogs barking happily in the background; Calvin’s wife, Debbie, in the front office, lights up when talking about her children. Even the company’s 2007 Christmas card exhibits a familial theme: it’s a photo taken in 1960 of Martin’s first piece of equipment, a 933 Cat front end loader, with Martin, 32 at the time, and a four-year-old Calvin standing on the treads. Spring 2008 • TR ACKS & TREADS 23 Finning brochure: circa 1959 Martin Giant spruce near Port Renfrew, B.C. Calvin points out that the good relationship extends to include Finning. “We had the same salesman, Eric Faye, for many years, and Karrey and I knew him when we were kids,” he says. “There was a real trust between him and us, and he helped to develop our inventory.” The good will is reciprocated by Finning’s Knutson, who has been looking after the Marsolais clan for six years and has a special fondness for Martin. “He may be relatively small in size but he’s the kind of person who gives you bone-crushing handshakes,” he says. “At an age when most people have long retired, he comes into our shop regularly to pay the bills, pick up parts, and chat up our female staffers. If a machine could use improvement, he isn’t shy about saying so.” Dynasties get started in many colorful ways, but ironically Martin didn’t set out to become a logging contractor, and he didn’t 24 TR ACKS & TREADS • Spring 2008 come from a logging family. “My father did a lot of things, including working in the forest, but I chose this field simply because I wanted to make a living, and in 1947 there was a job opening,” he says. When he relocated to Prince George to work for Sinclair Mills, trees were still being felled with cross saws and skidded by horse. Of his Cat 933 purchase, he says, “Even back then, prices weren’t cheap. The 933 did the job, but it needed a lot of improvement. From there I went with a 955 and then performed custom loading with a 977.” Martin doesn’t dwell on the complexities of launching his business, but he does reveal some of his hard-driving work ethic when he says of his sons, “They began working with me early. At 14, Calvin was helping the buckers. They started the day early and came home late. It may have been a difficult way to learn, but that’s what makes you a good man.” Innovations characterized MMS operations almost from its inception (see sidebar), and from employing a dozen workers throughout the 1960s the company today uses about 30 people in the bush. Moreover, MMS has adapted to industry changes including the Forest Practices Code, Safe Certification (which it obtained from the B.C. Forest Safety Council last year) and WorkSafe B.C. Similarly, MMS has evolved to meet an ever-changing market, going from hand bucking to mechanical bucking, from landings to road side, and from long logs to precision bucking. “Our phone rings 24/7,” says Debbie. “My husband begins his day at 1:30 a.m., and he’s happiest when the temperature is around –15 or –20ºC because the ground is completely frozen and easier to navigate. It’s a tough life we’ve chosen, certainly not for the faint-hearted.” www.finning.ca PHOTOGRAPH BY ALEX ZANDER PHOTOGRAPHY NIGHT MOVES: Calvin Marsolais starts his day at 1:30 a.m. and his equipment stays up all night Rakes and knuckles The family’s black lab cross, Ford, outfitted with his own safety vest, often accompanies Calvin into the bush. After Calvin and Karrey bought into the business, MMS’s ties with Finning continued. “We tried other product lines over the years, but we mostly opt for Finning because of the support they offer,” says Calvin. “If there’s a problem in the field, they can help. And they offer financing. They’re the closest thing around to a onestop-equipment shop.” Calvin gives equal credit to Karrey, who left the business in 2004, for helping to grow MMS to its current capacity and, equally important, to navigate the numerous downturns and cutbacks that have plagued the industry. “In the past, the busiest day we ever had was hauling 53 five-axle loads out of the bush, but today we routinely haul between 21 and 35 seven-axle loads daily, depending on www.finning.ca the season,” says Calvin. Helping to fulfill MMS’s daily duties is Calvin’s son Jayme, 22, who works the butt ’n top for his father. He’s the third generation of the Marsolais clan, which is coming into its own with Calvin steering the company steadily into the 21st century. But it seems like the company won’t let Martin go. “We still view Martin as the boss,” says Debbie. “He still comes in every day to lighten our load, and he has a wealth of practical experience that we all rely on.” For his part, Martin pays little attention to protocol or the passing years. To him, work is perpetual, and so are new business opportunities. “Put it this way, I don’t feel good lying around doing nothing, never have,” he says. “Working hard has been such a big part of my life that it’s second nature. And even though the market isn’t so hot right now, I still love the industry. Always will.” Adapting equipment to suit on-site conditions is nothing new to the logging industry, but Martin Marsolais & Sons has a 40-year history of innovation under its belt. One of the earliest brainstorms Martin had as president of MMS was to weld rakes on the blade of a skidder to help take limbs off of trees. “We were one of the first companies to do that in the 1960s, and later we improved the process by hanging chains onto a drum and literally beating the limbs off,” he says. MMS is also noteworthy as being one of the first logging contractors in Western Canada to use the Tanguay knuckle boom stroker. “We first used it in the field 23 years ago, and it sped production to the wheel loaders to such an extent that we wound up buying a second unit,” recalls Calvin, adding that competitors in the bush initially didn’t know what to make of the rig. “We were quite a sight, coming along the road with our boom 30 feet in the air,” he laughs. MMS has adapted everything from Loewen rotate bunching heads and Limmitt delimbers to Waratah danglerdelimbers to their Cat equipment, but all the adaptations are underscored by a simple philosophy shared by Martin and Calvin. “If it works well,” Calvin says, “we use it. It’s that simple. And thankfully, we’ve enjoyed great performance from our equipment over the years.” Spring 2008 • TR ACKS & TREADS 25 Vancouver Headquarters, 940 Station Street REMEMBER WHEN… 3 : Marsolais’ old Cat 93 TECH SAVVY EARLY ON 0 196 in ent pm shi a ng front end loader, preppi The Dawson Legacy Ian and Graha m The 1920s held promise for a young Canada and a young man named Fred Dawson A NEW ROAD: Fred and Graham Dawson he 1920s in Canada crackled with excitement and optimism. Transportation, communication and industry advancements offered new opportunities and adventures to a 20th century generation. And Fred Dawson had a car. He also had a radio to listen to baseball games on, an engineering degree from McGill, and a vision. In 1922, Fred Dawson, along with his friend Harry Wade, formed Dawson, Wade and Company. They wanted to be part of the building of Western Canada and were drawn to the boom and buzz of Vancouver. It was a busy time for Fred and Harry. They built roads, bridges and other infrastructure. They incorporated in 1927, and in 1929, got the contract for Vancouver’s Burrard Street Bridge. They worked, but still found time for a little jazz at The Cave on Hornby on Saturday nights. By the mid-1930s, hundreds of newcomers arrived in Vancouver every month. Dawson, Wade and Company worked on the King George Highway and Highway 39 to accommodate all those new Model Ts. After the war, they worked on the Boundary Bay and Patri- www.finning.ca STORY BY KATHERINE FAWCETT cia Bay airports, the Granville Street Bridge and parts of the TransCanada Highway. In 1952, Fred suffered a stroke, and his son Graham joined the team. When Harry retired, the company that became known as Dawson Construction was born. Graham led the company into new territory in the 1960s and 1970s. Dawson Construction continued with highway development – the Sea-to-Sky and the Alaska highways were but two of their road projects – while creating a building division that worked on some of the most prominent high-rise developments in B.C. Dawson and Finning president, Maury Young, were good friends. Graham’s son Ian says that from the early days, his family’s company has relied on Finning support and Cat products. “Any dozer we ever used was a Caterpillar. Most motors we’ve ever used were Cat. We’ve occasionally bought the green ones and red ones, but we always come back to the yellow. It’s not so much a single piece, it’s Finning’s support of all their equipment that stands out.” Ian recalls driving around with his father as a kid, his dad pointing out the projects Dawson Construction was a part of: Vancouver General Hospital, and University of British Columbia buildings. Daon Property Development, an offshoot of Dawson, built condos, housing and offices across Canada and the United States. “There’s definitely an element of pride. It’s a tremendous feeling to be associated with those accomplishments,” says Ian, now 50. Ian became president in 1994. The company relocated to Kamloops, a logical base for road construction that was forging into the interior. Dawson Construction still engages in site development, industrial and residential projects, but its main thrust is highway construction and maintenance. Today, Graham Dawson is 82. Ian still looks to him for business advice. Graham’s proud of the direction his son has taken the company. Construction is a different game than the one Grandpa Fred played back in the 1920s, but there’s still a certain buzz. “What keeps me going are the people and the challenges,” says Ian. “The unique elements here in B.C. make it fun and exciting. I guess it’s pride. And satisfaction. Finishing something worthwhile.” Spring 2008 • TR ACKS & TREADS 27 Lines Across the North Kenn and Rosella Borek built the North, one road and runway at a time STORY BY PHOEBE DEY TEAM BOREK: Rosella and Kenn took a hand in developing Northern infrastructure 28 TR ACKS & TREADS • Spring 2008 s a young newlywed in Dawson Creek, British Columbia, Rosella Borek quickly learned what her husband Kenn was all about. Married in September, 1955, Kenn spent most of that first winter as a roughneck in Fort Nelson. He came home to his pregnant wife for a quick Christmas visit, and returned up north until March. Rosella knew then that her hardworking husband meant business. But so did she. That spring, soon after giving birth to the first of six children, Rosella joined her husband clearing land for farmers in the Dawson Creek area with their first Cat D8, which still sits on their farm today. Rosella took shifts, often with a baby or two on her lap. “When you start a business, you have to be there all the time,” says Rosella. “We didn’t have any money, we had no choice.” It was a humble beginning for the couple that would eventually own Borek Construction, Kenn Borek Air, several hotels and one of the largest farms in the Peace Country. Often described as a “pioneer of the North,” Kenn died in 2002, along with his 39-year- www.finning.ca fleet first: “Kenn stayed with Caterpillar because we could keep it running,” says Stan Prince. “And he ran a good fleet.” old daughter, Carleen Rose Borek-Walker, in a highway accident. But back in the 1950s, the Boreks built the business, supplying their tractor to oil companies to truck water and supplies through treacherous roads. The Boreks also started cutting seismic lines for oil companies, in the Peace Country and in the Arctic. “Kenn was a major player in the initial exploration of the High Arctic and northern British Columbia in terms of seismic exploration,” says Stan Prince, Finning’s vice president of operations for B.C. “He had machines in Norman Wells, Northwest Territories, for years. He left his equipment up there and would cut seismic lines in the wintertime and park it for the summers.” And Rosella kept up with him. For the first few years of Borek Construction, she looked after the parts and personnel and often drove north to deliver supplies to Kenn. Then, when there was no one in the Arctic to fly supplies to remote camps, Kenn started his own airline in 1970 with one Twin Otter. “He was a classic man of business,” says Rosella. “He took advantage of an opportu- www.finning.ca nity when he could. He ended up building a company that really transformed the aviation industry.” Finning followed its biggest customer, opening its Inuvik, NWT branch soon after some encouragement from Kenn. “Finning was growing at the same time on a fishing trip Kenn didn’t want to stop for lunch – that drive carried over. Borek was,” says Prince. “At the end of the day, Kenn stayed with Caterpillar because we could keep it running. And he ran a good fleet. He’d keep a 30-year-old Cat, even if it was paid off 25 years earlier. If he got one more winter’s work out of it, he’d come out ahead. He ran a good business and was a shrewd negotiator.” He also knew his machinery inside out. Prince remembers being a young apprentice when Borek would have some Cats in the shop. Kenn would come in every day to eye his investment – his Caterpillar equipment – scrutinizing the work Prince and the others were carrying out, often not saying a word. “Kenn was strictly a Cat man,” says Wayne Middleton, manager at Borek Construction. “He was very faithful to his Caterpillars.” On the personal side, Kenn showed different sides of his personality to different people – and dogs; he always had a dog by his side, especially his favourite, Sergeant Pepper. Described even by Rosella as “private in most things he did,” Kenn was always determined. Dave Ritchie, the founder and former CEO of Ritchie Bros. Auctions, recalls going on a fishing trip with Kenn and Rosella. “Kenn was aggressive and didn’t want to stop for lunch – that drive carried over to all aspects of his life,” says Ritchie, who first met Kenn in the early 1960s. “But he had a funny side, too. He was good at kidding me about anything.” Despite the “remarkable empire” Kenn and Rosella built together, he never put on any airs, says Ritchie. Although he could afford a more luxurious means of transportation, Kenn once arrived at a Greyhound bus station two hours early, just so he could get Spring 2008 • tr acks & treads 29 Terrace, B.C. field service: circa 1972 REMEMBER WHEN… TIMELESS TRUTH: Borek Construction still uses principles passed on from its founder the front seat to take in the view. “He had an insatiable curiosity and loved to learn as much as he could,” says Ritchie. “I have great admiration for what he did. He and Rosella were such a hardworking, great team.” At one auction in Whitehorse, no sooner had the Boreks bought two Cat 621 scrapers when Rosella and Kenn hopped on them and drove them the long haul to Dawson Creek. To say Kenn was hands-on is an understatement. He knew every aspect of his business, and knew where every cent went. When he went to a sale, says Middleton, everybody wanted to talk to Kenn. He could be found leaning on a piece of equipment, likely with a pair of gloves in his front pocket, checking out his competition. “He never owned a suit, he got dirty just like everybody else,” Middleton says. And he and Rosella always made sure their employees were well looked after. “He knew how to do business the right way,” Middleton says. “He knew his equipment and passed on principles that we still use today. I learned an immense amount from Kenn.” Today, business is still going strong for Borek Construction. It has camps in the North- 30 TR ACKS & TREADS • Spring 2008 west Territories, is building leases and roads around Hinton, Alberta, and is double shifting 12 or 14 pieces of equipment in Fort Nelson. Still loyal Finning customers, the business owns more than 100 Caterpillar machines. Rosella serves as president of Borek Construction, while her son Dean manages the business. Most of Kenn and Rosella’s kids are involved in the company, including many of their 11 grandchildren. (They also have four great grandchildren). And Kenn’s name lives on. The Kenn Borek Memorial Scholarship recognizes a Western Canadian or Northern Canadian student pursuing an aviation career. The family also donated $250,000 to what would later be named the Kenn Borek Aquatic Leisure Centre in Dawson Creek, and Rosella donated her CF-PAT, one of the most well-travelled Twin Otters in the world, to the Aero Space Museum in Calgary. Just as she always has, Rosella works hard, going to the office every day. When Kenn died, she slipped into his spot, running the company they spent decades building together. “It’s hard for me to stay home. I’ll keep going in as long as I can. It’s all I know.” Borek on the wing If something needed fixing, Kenn Borek would sit down and figure out how to do it, says his wife Rosella. That included finding an easier way to cart his crew, supplies and equipment to the Arctic. In 1970, Kenn bought his first DHC-6 Twin Otter and Rosella chose the red and black insignia that still adorns the fleet’s fuselage. Today, the company owns and operates 57 aircraft and is one of the largest Twin Otter operators in the world. Although offering their machines for exploration activities has been the largest single source of revenue for Kenn Borek Air, it provides a range of services worldwide. On any given day, its aircraft could be supporting UN peacekeeping missions, transporting scientific teams and adventure charters in both polar regions or leasing aircraft and equipment to carriers in Cuba, Panama, the Maldives and Canada. The company gained notoriety in 2001 when it carried out one of the riskiest rescue missions by a small plane near the South Pole. Kenn Borek Air pilots transported a sick American doctor out of Antarctica, taking him to safety in Chile for treatment. Now led by Christien Vipond, Kenn and Rosella’s oldest daughter, Kenn Borek Air has permanent fixed-wing base facilities all over the Arctic, in British Columbia, Edmonton and Calgary. www.finning.ca TryFreedom Ernie Catherwood bought his first Fraser River tug to free him from working for the man. Now he is the man Story by Katherine Fawcett he number one song of 1971 blared from someone’s car radio near the dock on the Fraser River at Mission, B.C. as Ernie Catherwood gazed proudly at the most important purchase he’d ever made. “Jeremiah was a bullfrog / Was a good friend of mine.” Catherwood smiled and bobbed his head to the beat. At 24, he had been a boom-man since high-school, and had biceps the girls loved to squeeze. His shaggy brown hair fell into his blue eyes and he stepped into his small, wooden tug-boat. Ten thousand dollars it had cost him. Huge money, but he knew it would buy him freedom. No more punching the clock and putting in time. When he bought that first tug, he had a mind to deliver booms to the shake and shingle mills in the region from local storage grounds. He also thought he’d pick up some business helping other companies tow log booms and barges upstream and downstream through the Mission Rail Bridge. Catherwood called his tug the Sea Imp, and there would be more vessels of the same name to follow. Business was good from the start, and the company would eventually provide a crucial link in the economy of British Columbia. Catherwood figured out how to operate his new boat, and learned what kind of tow- www.finning.ca Spring 2008 • tr acks & treads 31 Remember When… Cat equipment cleans up London’s Blitz damage in WWII ing services people were looking for. It wasn’t long before he became one of the busiest and most dependable operators in the area, towing log booms and rafts from Mission storage grounds to the mills along the banks of the Fraser River. Soon he needed another boat for his fleet, so he had one built. Then he bought another. And on it went. More boats, more business, more employees and more challenges. He used mostly Cat 343 and later 3408 engines in his vessels to ensure smooth sailing. Catherwood credits Finning sales rep and former mechanic Nairn Grundy with great service and consistent quality products. Ernie Catherwood is now 62. He still likes to stand on the dock and gaze proudly at his 32 tr acks & treads • Spring 2008 investments – theoretically, that is. With 15 boats and four barges, they’re not likely to be all in the same place at the same time. Catherwood Towing now operates not only up and down the Fraser River from Mission, but also into Harrison Lake, Ootsa Lake in the B.C. Interior, around Vancouver Island and the Queen Charlotte Islands. Catherwood has diversified into hauling construction equipment between various sites on barges, a venture that has helped the company weather the seasonal and yearly changes in the forest industry. The current fleet features the most modern navigational and safety equipment available; these are vessels with minimal environmental impact and maximum efficiency. Today there are approximately 80 people on Catherwood Towing’s payroll. The company has long and strong ties with many of them. His daughter Paula is the office manager. “It’s a family-run business,” says Catherwood. “I still have fun with it. And as the company carries on, I’m hoping that my daughter will keep the ball bouncing.” When he isn’t overseeing the operation, checking out his vessels and making sure everything flows smoothly, Catherwood and his wife Yvonne spend their time travelling in their RV, canoeing, fishing and exploring the province. And if you listen carefully when he starts the engine of the RV, you just might hear a 1971 favourite coming over the Classic Rock radio station: “Joy to the fishes in the deep blue sea / Joy to you and me.” HARD AT WORK: Catherwood’s fleet of 12 tugs, most of them called Sea Imp (numbered to differentiate them), is registered with Transport Canada. The Imps are a familiar sight on coastal waterways www.finning.ca CAT CARE SCHOOL: Finning has built its reputation on a strong culture of service, creating innovative solutions for customers www.finning.ca Spring 2008 • TR ACKS & TREADS 33 Everyday Heroes Keeping customers’ machines moving, no matter where or when, has always been Finning’s strong suit INTRODUCTION BY JEFF HOWARD inning’s dedication in the field stretches back to Con Gurney, the company’s first mechanic. Once, he fashioned a ball bearing from a logger’s boot to keep a tractor up and running. “Con was a one-man gang, travelling to wherever machines needed attention,” said the late Bob Ley, former PR manager at Finning. “In his first year of married life, he was home only 13 weekends.” “They personify Finning; mechanics first of all but also salesmen, problem solvers and ambassadors,” Ley said of Finning’s field mechanics. “They work all hours, in all weather, without the convenience of a shop.” Here’s a historical highlight reel from our everyday heroes. Con Gurney, Finning’s first mechanic, cuts a rug with the boss’ wife, Marcia Finning (top), Bev Davis (above); Peter Clarke (right) 34 TR ACKS & TREADS • Spring 2008 John Snowball, Finning career 1968-1991 “I rented a Land Rover to visit a customer, working in the mountainous Taseko Lake area. On the way, I arrived at a river with no bridge. I drove across but got hung up in the middle. I’d noticed a little D4 not too far from the river, so I walked back to it, got it started and hauled the Land Rover out. I ended up staying at that camp pretty well the whole summer. www.finning.ca In those days, there were no phones. But an engineer with the mining company had one of those old style radio phones. We drove to the top of a mountain, he stood on the truck and held the aerial, and I was able to call into the Williams Lake branch to order parts.” Bev Davis, Finning career 1947-1988 “Travel wasn’t easy. We often travelled by steamship or had to hitch a ride on a fishing boat. You’d have a one-day job at a camp and be stuck for 10 days waiting for the next boat. One time, I got so bored I asked the landlady if there was anything I could do. She said she had some wood that needed splitting. I’ve never split so much wood in my life.” Ed Green GREAT SERVICE: Rain or shine own ingenuity and ability to improvise that got the job done.” Ed Green, Finning career 1946-1983 “I once walked from Sandspit to Cumshewa Inlet (about 30 miles) on the Queen Charlottes. I’d been working at a logging camp and didn’t want to wait 10 days for the boat to pick me up, so I walked, carrying my toolbox. I had to take off my pants, shoes and socks to cross a few creeks and rivers.” Derwyn Dew, Finning career 1954-1996 “At small logging camps, you took your own sleeping bag, chopped firewood and stoked the bunkhouse heater. On several occasions, I woke up with two inches of snow on my sleeping bag. Your lift tools consisted of a comealong and a couple of jacks and whatever equipment the customer had. It was your www.finning.ca Bart Finning, Finning career 1950s “A mining outfit in Tahsis had an older model D8 2U. To make the repair, we had to pull the tracks off and the sprockets – without lifting devices. The company had an old dump truck, so we borrowed a 12-by-12 piece of lumber and strapped it into the back of the truck. After chaining the dump body down, we attached a chain hoist to the 12-by-12 and tore the machine apart that way.” Peter Clarke, Finning career 1945-1989 “I was called on to rebuild two D311Es at Horsefly Lake, B.C. On completion, it was necessary to carry out a load test and safety shut-down. The unit performed well and after it shut down, I noticed the manager’s wife heading my direction without a smile. Fond of the Monarchy, she’d been listening to the coronation on the radio. At the time of shutdown the Queen was about to be crowned. So was I.” Jim Kilner, Finning career 1947-1985 “When I started with Finning, my Navy pension paid 75% of my wages and the company paid 25% as part of a training-on-the-job scheme. I think Finning succeeded because of the service support we provided and the follow up we did with customers. Nobody just sold a tractor and walked away. You always followed up, advising the customer when to do overhauls and repairs. You paid attention to your customer.” Joe Adams, Finning career 1933-1967 “I was asked to call on a customer near Vanderhoof, B.C., in the dead of winter. To get there, I went in stages by car, on horseback and even snowshoes. When I eventually arrived, all that the customer wanted was some literature on Caterpillar tractors for his 12-year-old son! And once, to reach a logging camp along the Arrow Lakes, I took an old sternwheeler. I hadn’t visited this particular logging camp before, the crew dropped a plank on to the shore and I disembarked. It was pitch dark and I had to pace the beach until dawn when I could follow a tractor trail into camp.” Spring 2008 • TR ACKS & TREADS 35 Green is Gold SPAWN OF MINE: Port Hardy Bulldozing created a diversion channel, complete with spawning gravel. Three months later the salmon arrived 36 TR ACKS & TREADS • Spring 2008 One B.C. family is tearing down the mine they helped build. And they couldn’t be happier STORY BY ROBIN BRUNET ike many companies on Northern Vancouver Island, Port Hardy Bulldozing rose to prominence thanks to the Island Copper Mine. Port Hardy Bulldozing founder John Milligan helped build the mine’s infrastructure in the late 1960s. Regional business opportunities flourished throughout the mine’s 25-year life, and Milligan grew from being a one-man show to employing a multi-talented staff that included welder Ron Tupper, who took over the firm in 1977 with other partners. Even though the mine, once Canada’s largest copper producer, closed under BHP Billiton Inc.’s ownership in December 1995, it’s still a source of considerable revenue for Tupper’s company. And the work Ron and his son Paul have done at the site is garnering international attention. Since the mine was decommissioned, the Tuppers, with advice from engineers and environmentalists, have performed a comprehensive reclamation of the 700-hectare site under BHP Billiton’s guidance. They’ve done it using a Caterpillar fleet. Their efforts have been so successful that mine owners from other countries come to inspect their handiwork. “We host two groups yearly on behalf of BHP Billiton,” says Paul. BHP Billiton invited Port Hardy Bulldozing to undertake the reclamation shortly after the company began demolishing the mine’s facilities, 11 years ago. Essentially, a channel www.finning.ca TAKE ROOT: The company moves a former waste rock dump, tops it with a metre of till and plants it with alder trees was cut between the 1,300-foot deep main pit and the Rupert Inlet in order to flood the pit and transform it into a massive biological treatment system. “We maintain a mixture of salt water at the bottom of the pit and fresh water above that, and the surface is fertilized to create phyto-plankton that metal contaminates adhere to,” says Paul, general manager of Port Hardy Bulldozing. “The metals then sink to the bottom and the treated water is filtered through a beach dump and difused into Rupert Inlet.” Although most rock drainage water is collected and pumped to this pit, residual long-term risk to the nearby marine environment was considered high enough to warrant further remedial action in 2004. Since the collection system was required to operate at mean sea level, the challenge was to engineer a system that would capture maximum seepage from a waste rock dump without collecting seawater. The solution BHP Billiton came up with, and which Paul Tupper’s company helped install via channeling and backfilling, is a 500-metre-long vinyl wall resistant to salt corrosion. It comprises 822 interlocking vinyl sheet piles, vibrated into the ground to a depth of 12 metres. This technology had never before been implemented in North America and is one of the reasons mine officials from other countries visit Port Hardy. “They come to check out what has been www.finning.ca accomplished throughout the site and determine if they can adopt some of these measures,” says Paul. Although Port Hardy Bulldozing performs everything from road building for forestry to residential site prep and servicing, Paul calls the mine reclamation “our main priority.” He uses his Cat 330 road builders, 325s, 322s, 320s and 416s to spread ballast, dig ditches and fulfill other duties throughout the sprawling acreage. And he admits to being a devoted Cat man. “If you cut me, I bleed yellow,” he says. In 2007 alone, the company purchased a short-back 320 CLU (which Ron, ever the tinkerer, ran for about a month before handing it to a regular operator), a 242B skid steer, which is currently chipping slag from underneath a recovery boiler for a pulp mill in Port Alice, and a 730 articulated truck. The reclamation has even provided the Tuppers with some police action: Paul recently helped the RCMP track down thieves who had broken into the property to steal copper scrap and other metals. The thieves found a way in and were still somewhere on the grounds. “The hunt began at about 2 a.m. and ended at sunrise,” he recalls with a laugh. “They had lots of places to hide.” All of Island Copper’s hectares have been revegetated, but BHP Billiton considers the reclamation to be an “in perpetuity” project, which means Paul’s relationship with the mine could conceivably continue into his senior years. “I’ve been aware of the mine ever since I was a kid, when I used to sit on my dad’s lap as he ran his machines,” the 33year-old says. “Our company helped build the Island Copper facility, we helped maintain it, we took it apart, and today we’re very proud to return the land to its natural state.” For 63-year-old Ron and his wife, Anita, whose bookkeeping skills were invaluable to maintaining Port Hardy Bulldozing through thick and thin, having a permanent assignment gives them the confidence to relinquish more daily duties to their son. “I’d never fully retire, but I want more time to tinker with the other mechanics in the shop, which is my specialty,” says Ron. “It’s tough making a living up here, and in the old days I sometimes used to come home and tell Paul, ‘For god’s sake don’t ever wind up doing what I do for a living.’ But all things considered, we turned out just fine.” BIG FISH STORY: The company rebuilds a dam, installing a new fish ladder Spring 2008 • TR ACKS & TREADS 37 The sureway: An Edmonton construction team supersizes its operations with Caterpillar 38 tr acks & treads • Spring 2008 www.finning.ca STORY BY MELODY HEBERT or Alberta-born construction dynamo Dennis O’Rourke, the size of your equipment does matter. The founder of Sureway Construction, O’Rourke has spent a lifetime acquiring many of the biggest, baddest scrapers, earth moving and water and sewer equipment in North America. They’ve also got a pretty sizable sandbox for their equipment to play in – various parcels of land on the edges of Edmonton. To keep it all going, Sureway’s head office features an impressive repair and rebuild center in southeast Edmonton. Thanks to Alberta’s robust economy, you’d be hard pressed to see much of Sureway’s impressive fleet languishing idle in the yard. Vice president and general manager Bruce Hagstrom is also hard at it, along with his crew, taking advantage of every opportunity. After all, he’s spent 35 years in this province’s construction business, and the lean years of the 1980s are still as fresh in his mind as are the last decade’s opportunities. www.finning.ca A construction maverick with a bigger-is-better attitude celebrates 35 years in Alberta, and business is stronger than ever Still, the future is never a sure thing, but for now Sureway is celebrating good business. “How about mind-boggling?” Hagstrom says of the privately-held company’s recent growth. “I don’t get surprised by much; our business is very much dictated by the economy. Our company has had to raise the bar to keep up with the boom.” Translation: A 30% increase in the size of Sureway’s diverse fleet of heavy equipment in the past three years alone. It has more than 400 pieces, including 52 scrapers, Cat 657 E and G series, making it the single largest owner of these durable wheel tractor scrapers in North America. The Cat 657s complement its 38-strong fleet of 627 scrapers. That’s quite a lead up to 2008, the year Sureway Construction marks its 35th anniversary in Alberta. Growth in the last decade has been nothing short of spectacular, with the company employing more than 800 workers during seasonal peak and reporting more than $315-million dollars in gross sales in 2007, earning it a place in Alberta Venture magazine’s Top 25 ranking of the fastest growing firms with revenue over $20 million for the past three consecutive years. Sureway has accomplished this growth while focusing its efforts solely in Alberta, where it’s known to be a generous supporter of various charities. It has established a foothold recently in Fort McMurray where it has pursued residential subdivision opportunities, which will provide affordable housing for the community. Not bad for self-proclaimed ditch digger O’Rourke, who started his career in Calgary installing water and sewer, and later founded Sureway Construction in Edmonton. As fate would have it, O’Rourke’s first job in 1973 was inspected by none other than Hagstrom, then an employee of an engineering firm at work in Strathcona County. Hagstrom must have made quite an impression on the headstrong entrepreneur, for it wasn’t long before O’Rourke enticed the inspector to join him. The year was 1975 Spring 2008 • TR ACKS & TREADS 39 Parts service, Peace River dam project, 1964 REMEMBER WHEN… Sureway to Success and Alberta was experiencing its first, albeit smaller, economic boom. O’Rourke’s rise to the top doesn’t surprise Finning account manager John Gallimore, who has worked with Sureway for the past 16 years. “Dennis is an entrepreneur who loves challenges, he’s a dynamic individual who likes to make his own decisions,” Gallimore says. And what of O’Rourke’s penchant for the latest and greatest equipment? “Bigger, better, harder, faster,” says Gallimore, a grin spreading across his face. “Dennis is innovative that way. They’ll use 385’s (170,000-pound excavators) to complement Sureway’s f leet of 46, 40-ton articulated trucks, 16 of which are ejector trucks.” Using 385 hydraulic excavators for water and sewer projects, Sureway has improved safety and productivity to accommodate the triple-trench construction design that has become its standard. In another innovative move, Sureway decided to bring in 657 auger scrapers, the largest wheeled tractor scrapers Caterpillar builds, to complete the four-lane Highway 4 construction near Milk River, in southern Alberta. It was the late 1990s, a period when smaller scrapers were the norm on Al- berta construction sites. Sureway, taking a cue from its California counterparts whose twin-engine 657s regularly built large freeways and dams, followed suit with better than expected results. “We were having a tough time loading [sand with] push-pull scrapers and conventional scrapers, so we tried the Caterpillar 657E auger scrapers. I couldn’t believe what these things could do,” O’Rourke says. “The biggest advantage is that they really do self- local construction sites introducing a fleet of Caterpillar’s latest model 740 ejector articulated trucks, replacing traditional dump trucks, using a system which allows them to spread-on-the-go – as much as 42 tons of material – out the back of the box. It’s a welcome addition in terms of site safety and productivity. Safety, as well as performance, is of paramount concern for today’s construction CEOs. Certainly, a by-product of Sureway’s appetite for the latest and greatest equipment is increased safety on the job site, but it’s not just about bragging rights. Companies lacking topnotch safety records will find little success in the competitive bidding process for desirable projects. Of course, having a 51,000 square-foot office and repair/rebuild centre as well as a 14,000-square-foot satellite rebuild centre at your disposal helps increase safety and efficiency for operators and equipment. Add to that a mobile fleet of lube and fuel trucks, with the latest environmental standards, ability to service equipment on site and a religious adherence to maintenance schedules coupled with an in-house component and engine rebuild program, and Sureway can proudly advertise a 93% availability of its fleet. It’s a source of pride for Certainly, a by-product of Sureway’s appetite for the latest and greatest equipment is increased safety on the jobsite, but it’s not just about bragging rights. load. We’re getting load counts in southern Alberta that would be unheard of – 187 loads in a shift as compared to 120 with other types of scrapers.” And it wasn’t like Sureway needed to go shopping for these mammoth machines. An existing fleet had been in their possession for a few years, stripping overburden at gravel pits for such companies as Lafarge and Inland. More recently, Sureway created a buzz on Sureway Timeline 1973 Dennis O’Rourke founds Sureway Construction, begins accumulat ing underground utility work 1975 Bruce Hagstrom, Sureway vice president and general manager, joins Sureway Construction 1976 Sureway lands its first contract with City of Edmonton to prepare site and underground utilities 40 tr acks & treads • Spring 2008 1980 1988 for residential subdivisions. Acquires its first Cat 245 hydraulic excavator Sureway purchases two Cat 627B scrapers, branches out into earthmoving services Sureway purchases five additional 627B scrapers, diversifies into overburden stripping for megacorps Lafarge and later, Inland 1989 Wins first government contract with Alberta Transportation to construct a 14-kilometre stretch of secondary highway 757 1995 Wins first $10-million project with Alberta Transportation for Highway 60 and Yellowhead Highway 16 Interchange 1997 Company acquires two Cat 657E www.finning.ca auger scrapers. Starts Sureway Trucking Inc., specializing in heavy equipment transport 1999 Works on Highway 4; introduces innovative use of 657s on highway jobs in Alberta, moving 4,000,000 cubic metres of earth; participates in the Shell Canada Upgrader project; undertakes its first indus- www.finning.ca SPEED THRILLS: With a bucket capacity of 7.75 cubic yards, the 385B can chew a hole in a hurry trial site preparation project, for which Sureway receives Vendor Excellence Award from Shell Canada, moving more than a million cubic metres of earth 2001 Acquires Yellowhead Aggregates 2003 Works on the Campsite Road & Hwy 16 Interchange (Alberta Infrastructure & Transportation); moves more than 1.6 million cubic metres of earth 2004 Acquires Sil Industrial Minerals 2007 Completes the southeast leg of Anthony Henday ring road (winning an environmental award), moves 7.5 million cubic metres of earth, lays 1,600 metres of sewer pipe and builds 850 metres of culverts Spring 2008 • TR ACKS & TREADS 41 A Cat Sixty in action REMEMBER WHEN… the company and a boost to its bottom line. “The availability of the equipment makes or breaks the job,” Hagstrom says. Company-led reinforcement of its “repair before failure” principle has translated into increased productivity, efficiency and ultimately, more revenue. Always ready for a change, Sureway was one of the first accounts in the mid 1990s to buy into Finning’s early tech solutions, most notably, the Maintenance Control System or MCS, a web-based preventive maintenance software program to track equipment costs and set up an ongoing maintenance inspection program showing the owner what to do to prevent breakdowns, and when to do it. It’s a system Sureway is still using today and one that has even Gallimore impressed with the breadth of its maintenance records. “Sureway has such a vast database of information of how long components last,” he says, “that I could ask any one of their guys how long a particular component will last on any machine and they’d be able to tell me.” The efficiency afforded by such a maintenance program is aided by the use of Finning’s Service Information System and the Cat Parts Store, which provide online ordering. In spite of his baby boomer years, Hagstrom takes these technologic advancements, especially tools such as Finning’s SURE GRIP: Available with a ripper and counter weight, the D10 is great in the muck Accugrade Laser and GPS systems, in stride, “Anything that improves safety and speeds things up, anything that enhances our capability to do the job, anything innovative,” Hagstrom says, “we want to do it.” Sureway’s track record with employees isn’t bad either. In an industry known for its transient workforce, Sureway has more that 100 long-term employees. Project manager Pat Roth joined the team in 1989 and hasn’t looked back. He credits Sureway’s management style, one that values input from employees. “We’ve all had different aspirations at one time or another regarding different jobs or equipment,” Roth says. “We feel comfortable putting up our hands and making suggestions. We feel a part of this place because both Bruce and Dennis value everyone here. They don’t just talk; they’ll run with our ideas.” Sureway also encourages senior staff to mentor the junior workers in the field, in hopes of attracting and keeping a new generation interested in construction. A wise move, but a tough challenge in Alberta’s tight labour market. Still, O’Rourke and Hagstrom have never been afraid of a challenge. From where Galli- more sits, Sureway’s tremendous success can be summed up in the pair’s willingness to keep asking, “What else can we do?” That enterprising spirit has resulted in a diversification of talent over the years, into three other complimentary ventures, falling under the umbrella, Sureway Group of Companies: Yellowhead Aggregates, Sil Industrial Minerals and Sureway Trucking Inc. A juggling act to be sure, keeping so many companies moving forward, but slowing down just isn’t part of the vocabulary. In fact, after closing the books on 2007, its most successful year yet, the company looks forward to making the most of opportunities in 2008. After all, who wouldn’t be optimistic after a year that added a mega project with the Alberta government to their growing list of accomplishments? Sureway was one of the key players in a public-private, $493-million dollar venture, the first of its kind in Alberta. A consortium of local talent was hired to design, build, finance and maintain an 11kilometre stretch of the city’s Anthony Henday Ring Road. Sureway’s role in the project involved 7,500,000 cubic metres of earthworks, and other drainage and utility works. Hagstrom is quick to credit their overall success to O’Rourke’s intuition. “If we hadn’t taken some of the leaps we did in 2006 with regard to acquiring equipment we wouldn’t have been able take on the projects we did in 2007,” he says. Less-than-rosy predictions for a slowing market don’t rattle O’Rourke. He waves one hand. “Bigger, better,” he says with a smile.No complicated economic analysis or GPS necessary, Sureway Construction Group moves in one direction only – and that’s up. OUT OF A SCRAPE: Cat’s 657E, at 500 horsepower, was right for Sureway’s road constructions 42 TR ACKS & TREADS • Spring 2008 www.finning.ca Partners in Progress An Edmonton company is attracting new staff with its investment in cutting-edge industry technology LONG HAUL: KMC has come a long way from its beginnings in southern Alberta and Saskatchewan STORY BY RYAN SMITH s with most great things, KMC started with humble beginnings. Nearly 60 years ago, T.A. (Ted) Klemke started a business providing the equipment and workers required to build irrigation ditches and roads in southern Saskatchewan and Alberta. Klemke, and later his son, Jack, became known for conducting business with integrity and delivering on promises. Known today as KMC Mining, the company saw measured growth through the 1950s and ’60s, with services expanding to include digging and hauling for various types of mines, such as coal, gold, diamonds and uranium, throughout western Canada and the Northwest Territories. In the early 1970s, KMC saw its future in the Alberta oil sands, and for more than 30 years the company has completed contract work in Fort McMurray, mainly removing overburden and ore and building earthen structures for the mines. They are one of the few – and the biggest – private companies currently operating in the oil sands, and the outlook for the future is good. www.finning.ca Spring 2008 • TR ACKS & TREADS 43 WORKHORSES: This 793D haul truck and D10 tractor are key to KMC’s efforts in the oil sands In fact, with the price of oil hovering at record highs, KMC is set for unprecedented growth. The Edmonton-based company expects to increase its number of employees by more than 250% from its 2006 levels. It also expects to make some significant increases to its infrastructure, as well. “If you look at our growth based on the size of our fleet, we expect to double our size in 2008 compared to our 2005 numbers, and then redouble in 2012 from what we’ll have in 2008,” says Dermot McArdle, general manager of KMC’s fleet. “Our growth comes from the fact that we’ve earned our stripes. The major companies in the oil sands industry recognize that 44 tr acks & treads • Spring 2008 overburden and ore removal is our core competency, so more and more they’re coming to us to provide that service, and in order to do that we need to supply a reliable fleet,” McArdle adds. KMC buys a large part of its fleet from Finning, and the two companies have enjoyed a business relationship going back more than 50 years. Currently, Finning provides KMC with assistance and product support for approximately 80 pieces of heavy equipment, mainly large haul trucks, which it has sold to KMC over the years. Paul Bechard, Finning’s major account manager for KMC, says KMC deserves a lot of credit for positioning itself so well. “There is a lot of pressure on the contractors to develop and use innovative and more economical methods to do business in the oil sands, and that’s just what KMC has done. The company has streamlined its operations and built up a strong reputation over the years,” Bechard says. “Another reason KMC does so well is that it works hand-in-hand with its suppliers, such as ourselves, and to a certain extent it relies on our ability to provide dependable service,” Bechard adds. McArdle agrees the relationship between KMC and Finning is mutually beneficial. “When we buy and when we maintain our equipment, we use the latest technologies and www.finning.ca Remember When… ics, and this is something which is recognized by Finning. So the people at Finning and Caterpillar know that our word is our bond, and that’s something that’s been threaded through the relationship going back to the beginning. “There has always been that understanding of integrity between both groups and it continues today,” McArdle adds. The key to success of KMC and Finning’s business dealings has been the personal relationships and trust that have grown between the people working for both companies. Serving KMC is not a job Finning can take lightly; it’s a challenge to keep up with KMC’s growth. “We have a dedicated service group consisting of technicians, service billers, a service supervisor and a manager focusing on KMC’s fleet maintenance,” Bechard says. “And we’re looking to increase our dedicated workforce in order to match KMC’s growth.” McArdle, who has been working at KMC, and working with Finning, for more than 20 years, including 18 years at the management level, believes the real key to the success of KMC and Finning’s business dealings has been the personal relationships and trust that have grown between the people working for both companies. “I have worked with many people from Finning over the years, and there have been numerous occasions when the account managers have made themselves available on weekends or late at night in order to address one emergency or another,” McArdle says. “We’ve come to trust that personal level of service, and that’s part of what makes everything work so well,” he adds. “One of our tenets at KMC is that we will adhere to the highest level of business eth www.finning.ca It keeps on trucking Somewhere, up in Fort McMurray, there’s a 200-ton haul truck with more than 100,000 hours of use behind it. The 789 Caterpillar truck is likely hauling earth at this moment. “That truck certainly has seen the test of time,” says Dermot McArdle, general manager, fleet, for KMC Mining (KMC), the company that owns the truck. “We purchased it back in 1988, and it’s seen continuous use in Fort McMurray that whole time,” he says. “We’re still using it.” KMC bought the truck from Finning, and Finning has, in part, played a role for its long life over the last 20 years. “When KMC Mining purchases Cat mining equipment from Finning (Canada), we do our very best to assist them with its maintenance, and also provide the necessary support to ensure maximum availability for KMC’s fleet,” says Paul Bechard, Finning’s major account manager for KMC. Bechard estimates that the 789 truck in question has accumulated roughly the equivalent of a million miles over the last two decades. “The idea of the 789, with such high hours of use on it, is a kind of testimonial to the longstanding relationship between Finning and KMC,” Bechard says, “and it’s a clear demonstration of how cooperation provides longevity and strength through the test of time.” Spring 2008 • tr acks & treads 45 A good time was had by all operating methods. It’s helpful in attracting new employees to be able to share the fact that they’ll be working with the latest and best technology available globally, and in a large part that comes from Finning,” McArdle says. KMC has, for example, invested in Finning’s S.O.S. fluid analysis services, sending oil and other fluid samples from its machines to Finning’s lab to check that its fleet is running optimally. Cat D8 by the Decades In the 1920s, nobody suspected that a merger made of necessity would result in a modern-day industry heavyweight n 1925, no one predicted that “Caterpillar,” the name of a new company created from a merger would become synonymous with heavy equipment. Today, Caterpillar Inc. manufactures a vast range of construction, mining, logging and farm equipment, from the smallest mini excavator to the largest trucks on earth. Finning (Canada) is the proud dealer for Caterpillar equipment in Western Canada. Here’s how Cat has developed the product lines that Finning sells and services. Crawler tractor pioneers: the 1920s The two leading crawler tractor manufacturers in the United States merged to form the future industrial giant Caterpillar Tractor Company. Arch rivals for years, the two companies, Holt Manufacturing Company and C.L. Best Tractor Company, had developed and marketed similar products. Benjamin Holt had introduced his first traction engine in 1890 and pioneered the world’s first commercially successful crawler 46 TR ACKS & TREADS • Spring 2008 tractor, later in 1904. In 1910, he registered “Caterpillar” as a Holt Company trademark. The same year, one-time Holt president C.L. Best started the C.L. Best Traction Company, building wheel and crawler tractors. The merger of the Holt and C.L. Best companies in 1925 was born of necessity. Wartime tractor orders dried up and the post-war tractor market was flooded with thousands of nearly new, cheap, government surplus machines. Holt and Best were facing huge debt, cancelled orders and possible failure; merger was the only solution. Immediately following the merger, the new Caterpillar Tractor Company, based at Peoria, Illinois, streamlined its operations and marketing network. Management chose five tractor models to form Caterpillar’s first product line: the Holt 2-Ton, the Holt 5-Ton, the Holt 10-Ton, the Best 30 and the Best 60. Forward-thinking management also began to look for other products to expand sales. In 1928, it purchased the established Russell Grader Manufacturing Company of Min- STORY BY KEITH HADDOCK neapolis, Minnesota. With this acquisition, Caterpillar had taken its first step toward becoming a diversified construction equipment company. 1930s: Diesel Sixty The diesel decade: the 1930s Caterpillar played a major role in developing the diesel engine for use in mobile equipment. It introduced its first diesel tractor in 1931, and 10 years later tractor sales were almost exclusively diesel. From its genesis in 1923, years of testing and redesigning took place before Caterpillar was satisfied that a field application would succeed. Cumbersome diesel engines of the day worked well in stationery conditions, but for mobile www.finning.ca 1940s: DW-10 wheel tractor equipment, diesel had to contend with variable loads, vibrations, weather, and some occasional abuse from unskilled operators. But diesel was so popular that Caterpillar allocated nearly all its research budget in that direction. In fact, Cat’s diesel tractor was just what agricultural customers needed. They liked its superior fuel economy and the fact that diesel fuel was cheap. But the diesel engine’s chief advantages were its greater low speed lugging capability, and the fact that maximum power was available over a much wider working range than a gas tractor. Caterpillar’s first diesel tractor was the Diesel Sixty with a 4-cylinder D9900 engine developing 63-drawbar horsepower. Builders fit it with a gasoline pony motor to aid starting. During the 1930s, the company introduced diesel versions of existing gas models, the Thirty-Five, Forty, Fifty, Sixty, Sixty-five, Seventy and Seventy-Five. By decade’s end, Cat established the familiar D-series tractors. Wartime and scrapers: the 1940s In 1940, Caterpillar launched an upgraded D7 tractor with design refinements. Designated the 7M-series, it carried the Caterpillar D8800 engine of 80-drawbar horsepower. The following year, Cat upgraded the D8’s D13000 engine to 113-drawbar horsepower, calling it the 8R-series. The D13000 engine was a winner. Installed in Caterpillar’s largest tractors since 1935, it carried Caterpillar through the war years and enabled the company to supply trouble-free engines in thousands of tractors at short notice. The slow-revving D13000 was as reliable as an engine could be; many still operate today. www.finning.ca These were the tractors that spearheaded allied Second World War efforts. Equipped with a bulldozer blade or scraper, the tractor was key for front-line fighting forces. The U.S. government needed most of the tractors Cat could produce, and by 1945 more than 31,000 had been shipped, many overseas. Often first on the scene, they cleared the way for fighting forces to follow. They built “The four machines that won the war in the Pacific were the submarine, radar, the airplane and the bulldozer.” bases across the South Pacific, along the Aleutian Islands toward Russia and pushed the Alaska Highway through 1,400 miles of wilderness. American naval admiral, William F. Halsey, said, “The four machines that won the war in the Pacific were the submarine, radar, the airplane and the bulldozer.” In 1940, Caterpillar introduced its first wheel tractor, the 90-horsepower DW-10, designed to haul a scraper. After the war Cat launched a line of pull-type scrapers to haul behind its crawler and wheel tractors. The earth moves: the 1950s This decade was marked by global construction projects, including construction of the U.S. Interstate Highway and the British Motorway systems, requiring unprecedented amounts of earth to be moved. New Cat and Finning customers were pushing industrial and housing projects forward, making up for lost time during the war years. Caterpillar responded by updating every one of its models with the latest technology. But the two groundbreaking events of the decade were Caterpillar’s introduction of its biggest tractor yet, the D9, and the establishment of a line of motor scrapers – high-speed earthmoving machines. The powerful D9 showed how to really push dirt. Ripping technology moved a step closer to eliminating blasting when a singleshank ripper was attached to the D9. In 1951, the small DW-10 motor scraper was joined by the 2-wheel tractor DW-21 and 4-wheel tractor DW-20 scrapers, carrying 20 and 23 heaped cubic yards respectively. And they sped along, hauling at 20 mp/h. At the start of the decade, Caterpillar purchased the Trackson Corporation along with its lines of crawler loaders and pipe layers. Initially based on standard tractors, the machines were redesigned by Caterpillar to become single-purpose machines. Spring 2008 • tr acks & treads 47 REMEMBER WHEN… New Dells Lumber Corp.’s 10-Ton Northern logger 1960s: 944 wheel loader Machines grow with projects: the 1960s The booming 1960s were an active time for Caterpillar. The company introduced four major product lines. Other products received new, top-of-the-line additions. At the end of 1959, Caterpillar announced its first wheel loader, the 944, followed in early 1960 by the 922 and 966. With bucket sizes of up to 2¾ cubic yards, these three rigid-frame models were industry forerunners. Articulated versions began to appear in 1963 with the 6-yard 988; soon all Cat wheel loaders boasted articulated-frames. Caterpillar’s scrapers received a boost with the introduction of the 600-series, a modern line of high-speed motor scrapers consisting of 10 models ranging up to the giant 666 with 54 cubic yards heaped capacity. Single and twin-engines were updated before decade’s end, joined by the twin-engine 627 and the elevating 633 model, in response to construction customers’ demands. Caterpillar then purchased Towmotor Corporation, giving it a line of fork lift trucks, broadening markets into the material handling industry. Caterpillar’s first two-wheel dozers, the 824 and 834 (300 and 400 horsepower) allowed speedy travel in surface mines. At the same time, Caterpillar unveiled its big No. 16 grader, topping out its grader line at 225 horsepower. 48 TR ACKS & TREADS • Spring 2008 The most significant 1960s event for Caterpillar was its entry into the off-highway truck market. In 1962, Cat introduced its superbly designed mechanical drive 35-ton 769, which became a leader in its class. Next, the company developed electric drive trucks and began marketing the 85-ton 779. At the same time, prototype 783 (100-ton side dump) and 786 (240-ton bottom dump) diesel electricdrive trucks were tested. But after 1969 Caterpillar went exclusively to mechanical drive. Consolidate and innovate: the 1970s The D8H crawler tractor had became one of Caterpillar’s best sellers, until the D8K replaced it in 1974. The D9 had earned a reputation as the most reliable big tractor in the field. It got bigger, too, when the 410-horsepower D9H replaced the D9G. But the big tractor news of the decade was the earth-shattering D10, at 700 horsepower with elevated high-drive sprocket. Launched in 1977 after eight years in development, the high-drive sprocket allowed a cushioned undercarriage to absorb uneven ground shocks. Modular construction made for easier maintenance. Caterpillar’s research and design program produced the first of its range of excavators. An in-house design, the 225 was the forerunner. For its forestry customers, Caterpillar developed the 518 log skidder, the only other new product line of the 1970s. And G-series graders made the scene, the company’s first with articulated frames and hydraulic controls. The 85-ton 777 dwarfed Caterpillar’s mechanical drive trucks. At the smaller end of the scale, Caterpillar launched the D3 crawler tractor, the 910 wheel loader and 931 crawler loader simultaneously. All three carried the 3204 engine in the 60-horsepower class. 1970s: 225 excavator www.finning.ca 1970s:D10 tractor Cat spreads its wings: the 1980s This decade was a time of change. After suffering financial turmoil, Caterpillar shook itself off, revamped almost every machine in its roster, and added 13 new product lines. The number of excavator models skyrocketed; at one point Caterpillar offered 29 basic models. To supplement its own machines Caterpillar formed a marketing agreement with Eder in Germany to import seven models of small wheeled and crawler excavators, and imported the E-series of 10 excavators from Japan in a joint venture with Mitsubishi. The move into articulated dump trucks occurred when Caterpillar acquired the British company DJB Engineering Ltd. and its nine models. The acquisition was a natural as DJB had always used Cat components. Another important product was the loader-backhoe. Caterpillar designed its models in-house and the first of a long line, the 416, appeared in 1985. The following year saw the first Cat Challenger rubber-tracked, highspeed tractor, in development since 1974. Caterpillar’s shopping spree continued with the purchase of the Solar Turbine Division of International Harvester, giving it a line of powerful gas turbine power plants. From CMI Corporation it bought manufacturing rights to pavement profilers, asphalt pavers www.finning.ca and soil stabilizers. It also purchased Raygo Inc., adding soil and asphalt compactors. To boost its logging involvement, Caterpillar’s agreement with Tanguay of Quebec, brought log loaders and harvesters to its customers in the woods. In 1986, Caterpillar shuffled its big tractor lineup, moving horsepower downward on the D8, D9 and D10 to accommodate the top-of-the-line D11N at 770 horsepower. Mining takes the spotlight: the 1990s to now A new 300-series excavator line consolidated the array of machines from the 1980s. Caterpillar also entered the large hydraulic excavator market with the introduction of the 5130, targetting surface mining projects. The decade was most signi ficant for Caterpillar’s mining products. The D11R boosted Caterpillar’s largest crawler tractor to 850 horsepower. The world’s largest production grader, the 500horsepower 24H, took the crown from the 16H. Two huge haulers appeared at the top end of the line, the 793 and 797 (the world’s largest truck) at 240 tons and 400 tons capacity. Caterpillar’s wheel dozer line expanded upward with the 844 and 854. The company moved underground with a line of articulated trucks and load-haul-dump machines from the joint venture Caterpillar Elphinstone Pty. Ltd. in Australia. Telescopic handlers were new in the 1990s with the purchase of the British company DJI Industries. The decade also saw a return to Cat’s agriculture roots with new combine harvesters from a joint venture set up with Claas of Germany. Responding to customers in a burgeoning landscape market, Caterpillar’s latest product, skid steer loaders, place the company squarely in the compact machine market. From one end of the size spectrum to the other, and across industries, Caterpillar is the world leader in heavy equipment. 1990s: 854G wheel dozer Spring 2008 • tr acks & treads 49 On Target Off Highway Highland Valley Copper finds Finning solutions to keep business moving forward, even when times are tough Story by Cait Wills t’s no surprise that Highland Valley Copper mine is one of Finning (Canada)’s most loyal customers. After all, Canada’s largest copper mine – located in Logan Lake, B.C. – has been using Cat off-highway trucks for 20 years. “We bought the first Cat fleet in 1988,” says Frank Amon, manager of operations for Highland Valley. “At the time, we had four truck fleets, totalling 75 units – two different makes, all of them old,” he says. “In 1988, we started replacing them.” Highland Valley Copper wanted vehicles known for their durability and versatility, which led them to Caterpillar. “We looked at truck fleets,” says Amon, “and the process of elimination led us to the Cat 789s; we were one of the first to use that fleet,” he says. But, due to a global drop in copper prices, the mine had to concentrate on keeping operating costs as low as possible, and the decision to upgrade to the 789s wasn’t made lightly. “Highland Valley Copper – like copper mines worldwide – was going through a tough time,” says Amon. So, Finning helped Highland Valley find trucks that would meet its needs without busting the budget. “We were able to find refurbished vehicles from 50 tr acks & treads • Spring 2008 all over the world. We have some that came from Australia, even.” The 789C mining truck is, according to industry specs, “engineered for performance, designed for comfort, and built to last.” It’s an off-highway truck with 1770.15 horsepower, a payload capacity of 177 tons, and a loaded speed of 52.6 kilometres per hour. Used for high-production mining and hauling applications, one of its most popular selling features is its long life. Amon says one of the most attractive aspects of the 789s is the versatility of the fleet. “When we started purchasing the 789s, we bought 10 to 12 units at a time, replacing the old ones as we went,” he says. All told, the company purchased 38 units. Now, those older 789s serve a new purpose at the mine: “We have 14 active 789s as haulage units and we’ve converted two into water-trucks,” he says. These machines are still working, despite the fact that Amon started purchasing Cat 793s for mining in the early 1990s. “The 793 is a bigger truck, so it’s more affordable to run at a lower cost per ton,” says Cam Hergott, mining accounts manager for Finning. “Operator costs are lower, and the www.finning.ca 793 has a higher yield.” Moving more tonnage proved to be a wise economic decision for Highland Valley Copper. Like the 789, The Cat 793D is known for durability, but it provides more horsepower. (The 793D has 2337.4 horsepower, versus 1770.15 horsepower of the 789.) The newer machine also has a larger payload capacity: 218 tonnes, 41 tonnes more than the 789. The 793 is a great choice for long uphill hauls, and tricky downhill loaded hauls. Perfect for Highland Valley Copper; a low-grade, low-strip, open pit, truck/shovel operation. The mill and three open pit mines – the Valley, Lornex and Highmont – cover more than 34,000 hectares, which means high payload capacity equals lower operating costs. That speaks to Highland Valley Copper’s bottom line, which Amon says, was crucial in making the determination to stick with Cat and Finning (Canada). “In 1999, copper had gone down again and we were going through a rough time. We even had to shut down for four months. Times were bad, so the operating costs and high haulage were factors in keeping production costs low,” he says. Now, copper markets and mine reserves have caused Highland Valley to extend the planned completion date of 2008. “We changed that to 2013,” Amon says and, ard of care Finning supplies. Hergott agrees: “We have a close relationship with Highland Valley Copper. We currently have two dedicated parts people, Murray Adams and Brent Huculak, a product support person, Mark Mulroy, and an onsite technician at the mine, Rick Cameron. He works five days a week at the mine and serves as a liaison. Because he can review any diagnostic issues and assess repairs, it helps with the transparency between the companies.” “One of the big factors was the level of support and service we receive,” says Amon. Finning serves Highland Valley both at the mine and at the off-site component shop, 75 kilometres away in Kamloops, B.C. “When you get the production equipment, the initial cost isn’t as important as the support you get. The component rebuilding for major items like torque converters and engines all help us keep our costs lower,” says Amon. Hergott, too, notes that the component shop is a key factor in providing superior service to Highland Valley. “One of the ways we supply support to Highland Valley is with our component shop, which we recently expanded to 4,090 square feet,” Hergott says. “The expansion provides Highland Valley Copper mine staff the opportunity to come to Kamloops, see the shop and review any component failure on site; it’s a great learning tool.” The relationship between the two companies has allowed Finning to work hand-inhand with its customer to provide operational support, failure analysis, feedback and more. With the shop expansion, Finning is able to meet Highland Valley Copper Mine’s growing expectations as its fleet expands. Of the mine’s relationship with Finning, Amon says, “Our current plan is to run the 793s through right to the end of the mine life and, if the close date is extended again, we’ll look at renewing the fleet at that time.” “When you get the production equipment, the initial cost isn’t as important as the support you get.” because of that extension, Highland Valley has committed to enlarging its fleet. “We have eight 793s on order, which will bring our 793 fleet up to 38,” he says. The decision to stick with Cat instead of going with another product speaks not only to the superior engineering of the off-highway trucks, Amon says, but also the stand- A FINE-TUNED FLEET: The level of service support was an important consideration when HVC made its buying decisions price wise: Top left, Finning technician Ed Mikalishen and the Kamloops component shop team keep HVC’s costs down www.finning.ca Spring 2008 • tr acks & treads 51 Sparwood (Re)builds Pride Sometimes it takes a bit of lateral thinking to turn a good idea into a great one STORY BY LISA RICCIOTTI PHOTOGRAPH BY DANIEL WIENER ebuild it and they will come. That could be the motto for a successful Finning Quality Rebuild program that’s helped put the town of Sparwood on the map. Ringed by the Rockies in the heart of the Elk Valley, scenic Sparwood is best known as home of the world’s largest truck: the nearly seven-metre-tall, 235-tonne Terex Titan. Yet it’s heavy metal of a different kind that’s attracting international attention. Global buyers look to this coal community for its Sparwood Specials, Caterpillar D10 and D11 track-type tractors rebuilt in Finning’s Sparwood shop. Buyers of Sparwood Specials get the equivalent of a brand new dozer at a significantly lower sticker price. Still, that’s not the driving force behind this unique program, which continues to prove its worth 20 years after the first D9 Sparwood Special rolled out of the shop. The real reason lies in the story of a good idea that grew into a great one. Terry Barber, now the global mining used equipment manager with Finning in Calgary, is pleased to share the story. Between taking phone calls from Pakistan and Egypt to close equipment deals, Barber finds time to stroll down memory lane as he relates the origins www.finning.ca Spring 2008 • TR ACKS & TREADS 53 TEAM SPARWOOD: Clockwise from bottom left, Bob MacArthur, Randy Loewen, Tim Campbell, Al Burns, Gary Loewen, Mark Wilton, Larry Lento, Cliff Wickwire and Silver Aragones of the Sparwood Special program. He remembers it well because he was there. In 1979, Barber was a young Finning mining sales rep, working under John Powell in the Sparwood area. One of his customers was Kaiser Coal, forerunner of Elk Valley Coal, which now operates six open pit mines in the region. As a leading producer of high-quality metallurgical coking coal, Elk Valley Coal today relies on a 400-piece mining fleet of heavy equipment to produce 25 million tons of coal annually. The situation was no different 30 years ago: Kaiser Coal also needed to maximize fleet availability and reduce downtime. Knowing this, Powell proposed an idea to Kaiser, radical for the time – leasing. Powell pointed out the options that continue to make leasing popular: new, reliable machinery would mean more productive time. Leasing rates would be lower than down payments on new equipment or rental costs; and maintenance expenses would be lower, since this leased equipment would be covered by warranty. Kaiser inked the deal, and Finning’s first Tractor Lease Program was born. “It started in one mine, and soon expanded to another four,” says Barber. “At the height of the program in the mid-1980s, we had 50 tractor Elk Valley Coal: a history 135 million years ago Dead plant matter piles up at the bottom of prehistoric lakes during the Jurassic era, forming spongy peat bogs. Sediment accumulates over millennia, burying the bogs. Geological pressures create the Rocky Mountains, hardening the bogs into carbon deposits, then coal. 54 TR ACKS & TREADS • Spring 2008 Fast-forward to 1873 During the Gold Rush, prospector Michael Phillipps checks out the Elk River Valley, looking for gold. To his disappointment, he finds coal. 1884 Geologist George Mercer Dawson shows more enthusiasm for B.C.’s coal. His report, released in 1886, draws national attention. units out, all on rotating lease programs.” Darold Thorp, regional manager of Finning Sparwood, has seen proof of the program’s efficiency: “One company that had a fleet of 30 unreliable tractors of various ages was able to replace those with a dozen good new leased ones.” Then, global economics threw a wrench into the program. In the late 1980s, the value of the Canadian dollar and the yen “went upside down,” says Barber. The tractor leasing program was increasingly unprofitable for Finning. But when the going gets tough, the tough get creative. Instead of packing it in, the Sparwood Finning folks turned their good, new idea into a great one. “We came up with a new take on the rebuild program,” explains Barber. “A custom rebuild would allow a rebuilt tractor to maintain availability standards.” It sounded good: continue supplying the mines with new dozers under a lease program, but add in the bonus of rebuilding those leased tractors at the end of their lease term, either sending them back to the mines for another tour of duty, or selling them elsewhere to put profitability back in the program. But could Finning take a hard-worked dozer and give it a second life? “There was never any question in my mind,” says Gary Loewen, now a field dispatcher with Finning Sparwood. He became the chargehand of the original crew who tackled the task. “So I put together some good allround mechanics who could work as a team, dedicated to making it a success.” The Sparwood Special Rebuild emerged. Terry Barber convinced the mines to give a Sparwood Special a try. “It worked famously,” he says. Twenty years on, the pride in his voice is still evident. 1887 Colonel James Baker, a Cranbrook landowner, forms a syndicate to develop the Crowsnest coalfields. By 1896, it acquires 250,000 acres of coal lands and a provincial railway charter. 1897 Twenty miners from Cape Breton arrive at Coal Creek near Fernie, producing 10,000 tons of coal and 361 tons of coke. By the end of 1898, the rail line is complete; markets grow and mining expands. 1900 to 1913 Coal production peaks at 1,528,934 tons prior to the First World War, then slowly declines, with minor fluctuations, over the next 40 years. www.finning.ca 1959 Annual production hits an all-time low at 850,000 tons. The British Columbia coal industry faces extinction. 1960s Traditional coal markets disappear in North America. The Crow’s Nest Pass Coal Company sends test shipments to Japan for use in steelmaking. Success! www.finning.ca In 1968, contracts are signed, leading to the coal resurgence. California-based Kaiser Resources Limited purchases mining rights of the Crow’s Nest Pass Coal Company and begins mining at the Elkview location. 1980s Mining methods switch from underground to surface, from Remember When… The gratifying part is seeing the look of satisfaction on the faces of guys in the shop. There’s a tremendous amount of pride.” That pride, along with technological changes to the dozers (such as the introduction of a high-drive track on the D10, which allows its undercarriage to last longer) are responsible for the increasing number of hours a dozer operates between rebuilds. Originally they went back after 5,000 hours; today it’s up to 12,000 hours. And many Sparwood Specials now go back into the field for a second or even third time. “Historically it’s been a good program for Elk Valley Coal,” says Doug Stokes, Elk Valley Coal’s vice president of operations. “We’re currently using Sparwood Specials in four of six mines, and one of every four of our dozers is a rebuild. The D10s and D11s are the backbone of our operations. We work them hard but they’re a cost-effective, reliable machine. Using the tractor lease program has improved our availabilities, and Finning has been a good partner.” After a pause, Stokes adds a final thought: “Elk Valley Coal’s long relationship with Finning has been a positive part of my mining career.” And undoubtedly the Sparwood Specials are a very special part of that relationship as well. dark, dangerous pick-and-shovel work to mechanized open-pit mines. Kaiser Resources becomes B.C. Coal, which becomes part of Westar Resources. 2003 The Canadian metallurgical coal mines previously owned by Fording Inc., Teck Cominco Limited, Consol Energy Inc. and Luscar Energy Partnership consolidate as the Elk Valley Coal Partnership. 2008 Today Elk Valley Coal is North America’s leading producer of metallurgical hard-coking coal. The company operates six open-pit mines in the region. Sources: Elk Valley Coal and The Sparwood Virtual Museum of Coal Mining Spring 2008 • tr acks & treads 55 Finning words of wisdom ness and leaks. Whatever fails to meet Cat’s reusability guidelines is replaced. The block may need to be line-bored to new Caterpillar specs; crankshafts that show cracks during electromagnetic testing are replaced; rod bearing bores may need to be reground; faulty valves replaced. New pins and bearings are put in all moving parts and components are painstakingly cleaned. The undercarriage, which bears the brunt of wear from the mine grind, requires particular attention. Dents are removed, and the cab is refurbished to like-new. Finally, when the unit passes final performance tests, it’s sandblasted and re-painted. Then comes the capper: a Sparwood Special decal is put on the cab window, often the only clue that it’s a rebuild, not a new dozer. “I love seeing a tired tractor go through the process and come out looking new,” says Thorp. “As for the satisfaction of seeing them back in action, I know I see a lot of Sparwood Specials on the mine sites, but unless I’m close enough to see the sticker, I can’t tell. photograph By Daniel Wiener Pride. It’s a word that comes up frequently in conversations about the Sparwood Specials. Al Burns, a journeyman welder and part of the original crew, continues to work on rebuilding Sparwood Specials today. “You have to take pride in what you’re doing to make it work,” Burns says. “You have to think about keeping quality up and costs down.” Burns remembers a recent buyer from Korea, who came to Finning’s Sparwood shop. The buyer couldn’t tell the Sparwood Special rebuilt D11 from the new one beside it. To get a dozer pristine after it has ripped rock and pushed mountains for 12,000 hours at the mines takes a bit of doing. “The crew takes the tractor down to the frame and starts over,” says Thorp. “They can tear it down within a shift.” But putting it back together, with safety checks along the way, can take 10 weeks. A crew of four mechanics plus one welder is dedicated to each rebuild. A Sparwood Special rebuild includes replacing hardware and rebuilding the engine as well as the transmission. Components are inspected and tested for wear, cracks, straight- 56 tr acks & treads • Spring 2008 www.finning.ca www.finning.ca Spring 2008 • tr acks & treads 57 Big Thoughts IT’S ALL THAT: Kidco uses the 24H, Cat’s largest grader, for construction Meef, this is applications a giant 24H Calgary’s Kidco has a huge advantage over the competition. Its giant machines get the job done faster STORY BY TRICIA RADISON This baby is a 330C 58 TR ACKS & TREADS • Spring 2008 f you happen to see an enormous Caterpillar machine in a Calgary construction zone, it’s safe to assume you’re in Kidco country. Southern Alberta’s largest earthmoving company, Kidco Construction Ltd. doesn’t believe in keeping things small. “We like big stuff,” laughs company president Ryan Erickson, explaining why Kidco owns equipment such as the 24H, Caterpillar’s largest grader. Sized for mining, the 24H is rarely seen outside of places such as Northern Alberta’s oil sands. But service is first at Kidco and in the construction industry, that involves getting the job done fast. Years of experience, skilled employees and a large fleet contribute to the company’s ability to move earth at record speed. And it’s the willingness of Kidco’s managerial team to think outside the box and come up with new solutions that sets the company apart. Owner and CEO Ken Renton made the decision in the 1990s to use giant mining machines to move dirt in a large urban centre. Renton founded Kidco in 1985, starting with a small fleet and firm industry knowledge. He and his brothers, Ian and Doug, had purchased their father’s construction company in 1977, renaming it Kidco Holdings Ltd. When Ian and Doug left to pursue other ventures, Renton started Kidco as it’s known today. A full-service earthmoving contractor, Kidco employs 250 people and has two dozen projects underway during peak season. Projects come in all sizes and range from subdivisions and golf courses to roads and man-made ponds. www.finning.ca “We had to look for the right people from inside and outside of our organization to handle different aspects of the job. With the changes made, we were able to successfully complete the job.” customer account manager at Finning’s Calgary branch, has worked with Kidco for three years and says that the company is consistently on the cutting edge of earthmoving. “Ken and Ryan are innovative,” Provencher explains. “They put their heads together and come up with the most resourceful ways to move dirt.” Provencher cites Kidco’s use of rigid frame trucks rather than articulated trucks. Most earthmoving companies opt for articulated trucks because they’re designed for softer underfoot conditions. Large rigid frame trucks typically used in mining require a solid haul road that takes time to construct. For Kidco, the advantages of using rigid frame trucks outweigh the inconvenience of creating haul roads on sites. The trucks can move more dirt per load and, with top speeds of 65 kilometres per hour, Kidco can reduce cycle times. “It’s just another tool in the tool- “Ken and Ryan are innovative. They come up with the most resourceful ways to move dirt.” The five-mile stretch of road took two years to complete. Erickson estimates he used a third of the company’s fleet for the job, including many of the large pieces of Cat iron that make Kidco unique. Kidco’s fleet includes Cat 657G scrapers, 385 excavators and D11 dozers, again more often seen in mining applications than in the city. Renton began purchasing large Cats in 1993, starting with 651 scrapers, as a way to meet clients’ requirements. Paul Provencher, Logistical challenges Stretching 53 feet long and towering 15 feet off the ground, Kidco’s 24H dwarfs the 30-foot long, 11-foot tall 14H motor grader used in similar applications. Its size has benefits: it can do in one pass what smaller graders do in two. But it also presents some challenges. Moving equipment such as the 24H from site to site isn’t easy. At Kidco though, it’s part of a day’s work. Most of the company’s projects are located within 200 kilometres of Calgary with occasional projects in Lethbridge and some as far away as British Columbia. Wherever they go, they’ll take the big machines with them if the job warrants. “We have the right hauling equipment to make sure we can move them effectively,” Erickson explains. “Secure your permitting and away you go.” www.finning.ca Ring around the city: As Calgary grows, so does the need for infrastructure experts, such as Kidco Spring 2008 • tr acks & treads 59 Remember When… In 2006, Kidco completed its first supersized project, constructing a section of Calgary’s Stoney Trail Northwest Ring Road for Alberta Infrastructure and Transportation (AIT). The $22-million project involved grading, storm sewer installation, paving, pond construction, landscaping, utility installation and movement of 5.5 million cubic metres of dirt. Kidco served as general contractor and this was the biggest job it had taken on for AIT. The bulk of the project consisted of heavy earthmoving, Kidco’s specialty, but there were other tasks the company hadn’t done before. Managing a large number of subcontractors added to the already significant paperwork and record-keeping required by a government client. Erickson, then-manager of operations, says he quickly realized he wouldn’t be able to manage the entire project himself. “We needed a team approach,” he explains. REMEMBER WHEN… Field Service 1962 box,” Erickson says of the rigid frame units. The company used to call on three or four smaller graders to maintain haul roads capable of withstanding the weight of the rigid frame trucks. Eager to increase efficiency, Renton and Erickson began looking for a better option. They found it in Cat’s largest grader, the 24H, which joined Kidco’s fleet in January 2007. It’s not every heavy equipment operator who can handle one of Finning’s monster Cats. Operators have to adjust to the size, horsepower and capabilities of large equipment. They must ensure they have a good grasp of the job’s scope to use the machine effectively. At Kidco, operators start off on smaller units, train on site, and move up to bigger things. Kidco is pleased with its giant grader. “We’ve found it handy,” Erickson says with a grin. “The faster we go, the better, so we have a big grader to make that road we travel on nice and flat.” When it comes to making haul roads, efficiency is doubled with the 24H. That, says Erickson, is the main reason Kidco thinks big. “We have big equipment and enough of it to get the job done. That’s what our clients bank on.” Kidco’s fleet is 90% Caterpillar, not by accident. Years of experience with different types of equipment led to the realization that Cat offered the reliability Kidco needed to effectively serve its clients. The company also appreciates the resale value of its Cat investment, as well as Finning’s support. “Finning has been good along the way, helping us maintain our equipment,” says Erickson. Kidco is Finning’s largest customer in southern Alberta for parts, service and machine sales. Due to the large number of ma60 TR ACKS & TREADS • Spring 2008 FEWER TRIPS: Also part of the fleet is this 775E, which holds more dirt, making for fewer passes chines it owns, calling Finning every time one needed service was becoming a hassle. To remedy the situation, Finning made two field mechanics available to Kidco seven days a week, 12 hours a day throughout 2007 to provide service and maintenance. Darryl DeVries, parts and service sales rep at Finning, says the arrangement is effective. “Our technicians are on site at equipment start up in the mornings and throughout the day to provide service and maintenance,” he explains. “It’s been an excellent tool for Kidco.” For Provencher, working with such an innovative company has been interesting. After all, it’s not often he’s asked to find mining equipment for a construction company. He enjoys the challenge of locating the machines Kidco wants. Kidco expressed interest in a used 24H several years before Finning was finally able to locate one. “They don’t come up for auction very often. The mines constantly rebuild them so there aren’t very many used ones for sale in the world,” Provencher says. A machine was found in Salt Lake City, Utah. Since resale is rare, Provencher faced the challenge of determining the value of the 24H and getting it priced correctly. Erickson is aware of the lengths Finning has gone to help the unorthodox company achieve its goals. “We’ve sent Paul on some wild goose chases to try to find us this and that,” he laughs. “That’s part of the reason we like Paul. He’ll try to make things happen.” Making things happen, regardless of what other companies are doing, is the name of the game for Kidco. The company continues to develop innovative solutions to help its clients achieve goals, even if it has to move heaven and earth to find the right of equipment. www.finning.ca READY FOR THE FLOOD: In 1948 the Fraser River burst through a dyke. Finning was there to help citizens prepare for the worst www.finning.ca Spring 2008 • TR ACKS & TREADS 61 For a long time, Earl Finning’s dedicated field personnel were the answer. Eventually, he needed more bricks and mortar Theof theBirth Branch Story by Jeff Howard ompany founder Earl B. Finning practiced MBWA – WD: management by walking around – with dog. On his daily march along hardwood floors at his Vancouver company he was joined by his Irish Setter, Pat. The “old man” would offer advice. Talking back was risky. Jim Mulvaney, who started in the parts department in 1939, says when Earl B. said jump, you jumped. Once, Pat sniffed out somebody taking a cigarette break. “We’re not paying you to stand around; you’re fired,” barked Earl. B. What he didn’t know was the dismissed “employee” was a Finning customer working on his equipment, a common practice those days. The fiery Mr. Finning had another side, though. Bev Davis, who joined the company from the army in 1947, comments: “He gave me a dressing down because the daughter of one of the men who worked for me was very sick. The old man said I needed to keep him informed so he’d be able to help the family.” These folksy nuggets help explain Finning’s impressive 75-year run to become the leading heavy equipment dealer in Western Canada, 62 tr acks & treads • Spring 2008 and Caterpillar’s largest dealer worldwide, with business in six different countries. “Earl B. was a generous man, who didn’t want you to know it,” recalls Mulvaney. Finning turned down Mulvaney’s request for the raise he sought for his employees. “But in the same breath, Earl B. would say they could use his station wagon to go for a vacation in Alberta if they’d like.” Just 36 when he founded Finning Tractor and Equipment Company in 1933, Earl B. Finning was the youngest dealer principal in the Caterpillar organization. It was the Great Depression, and the five employees hired from Finning’s predecessor had been work- ing part-time with reduced wages for several years. “When Earl Finning took over, he put us on full-time at our previous salaries,” said Finning’s first parts manager, Jack Rollins. “I don’t suppose anyone could understand our feelings at the time, nor the intense loyalty this one gesture created.” Despite the economic hard times, Earl Finning offered customers a helping hand. One logger needed a tractor but was so broke he could hardly feed his family, let alone make the down payment, writes Bob Ley in his unpublished history of Finning. Earl Finning delivered the machine anyway and sternly told the logger he’d better pay for it www.finning.ca Maury Young prototype: In 1963, the service depot at Merritt was a model for others to follow when he got the bill. But Mr. Finning didn’t send the bill until the logger was on his feet. His fairness and his determination “to take service to customers’ doorsteps” continues to be Finning’s driving force. Mulvaney says, “Mr. Finning always said he’d stand behind everything he sold, except manure spreaders. He kept his word.” Thanks to honest dealings and determined service support, Finning now operates in 55 communities in B.C., Alberta, Yukon and Northwest Territories, has resident technicians in another 61 out-of-the-way areas, more than 400 service trucks and Cat Rental Stores in 33 centres. But building service to this level wasn’t an easy task. Back in the winter of 1933, Con Gurney was the service department. On one occasion, Gurney hiked 20 miles over Mission Mountain in the middle of the night to get to Pioneer Mines in Bridge River, B.C., proud owners of the first diesel-powered crawler tractor in the province. He was able to hitch a ride for the last part of the journey but his feet were badly frozen. Four months later, he was still wearing bedroom slippers to work. Gurney went on to become general serv- www.finning.ca ice manager. From this position, he helped spread his brand of service commitment. That was great for customers, but was not always welcomed by employees. “Mr. Finning always said he’d stand behind everything he sold, except manure spreaders. He kept his word.” “With Con, you were never quite sure how long you’d be gone on a certain job,” explains Finning retiree Peter Clarke. “You could be gone a year because Con wouldn’t give you the whole story. This was particularly troubling to our wives who’d have to phone Con for our whereabouts.” But with machine populations increasing in the 1950s, the company could no longer rely on heroic service rescues alone – facilities needed to be built to support customers in remote locations. Caterpillar expressed concern. “But Mr. Finning wasn’t going to be told how to run the company; he still believed in resident servicemen and not in launching a building campaign. Con, a conservative sort, agreed,” recalls Clarke. Fortunately, Mr. Finning had an ace up his sleeve. His son-in-law, charismatic and MITeducated Maury Young, was nearly finished his Master of Science degree in Industrial Management and was ready to take over the reins; he’d joined the company in 1947 and had seen customer growth firsthand. More importantly, he’d mastered the art of negotiating with his father-in-law. With Young at the helm, the company was able to re-finance, and expansion of Finning’s branch network to support customers took off. “We’re hanging our hat – and the future of the company – on the proposition that we must give the finest service possible,” said Young in 1962. “Our future lies more in the hands of every employee in the service department than in any one other particular group within the company.” Almost prophetic, his words guided Finning’s service capabilities and delivery over the next five decades. No doubt the old man, and his dog, would be impressed. Now get back to work. Spring 2008 • tr acks & treads 63 12 Decades Strong Andrew Peter A couple of tradesmen in Omaha, the Kiewit boys started a true construction empire STORY BY KATHERINE FAWCETT n 2009, Peter Kiewit Sons Co. celebrates 125 years of continuous operations. Few companies of any kind can boast such a lengthy and successful record, let alone one in the everchanging and highly demanding world of construction. Kiewit was named one of America’s Most Admired Companies in 2007 by Fortune magazine, and it is consistently ranked among the top 10 contractors by Engineering NewsRecord. It has always taken on new challenges to deliver world-class solutions to projects of all sizes, in all markets. But without the flexibility to adapt to changing social, political and economic realities, Kiewit might still be a local contractor, if it were around at all, instead of the international business icon it has become. “The secret to Kiewit’s longevity has been that it’s grounded in good mid-Western values, such as consideration for employees and their families, a strong work ethic and team spirit, dedication to safety, quality and employee training, an employee stock-holder 64 TR ACKS & TREADS • Spring 2008 program and a great deal of good-old common sense,” David Wallace says. He’s the senior engineering manager at Kiewit’s Vancouver office. “Being an older, established company means the legacy is passed down from previous generations... It takes a generation to train the next leaders of Kiewit, we don’t hire mercenaries off the street. We grow our own leaders.” In fact, in 12 and a half decades, Kiewit has had just seven presidents. “This is unprecedented in modern times, where leaders, like professional sports coaches, generally have a very short tenure in these roles,” says Wallace. Kiewit’s history goes back to 1884, when brothers Peter and Andrew Kiewit formed a masonry company in Omaha, Nebraska. They were a local success story, working on several state landmarks. Eventually the firm was renamed Peter Kiewit Sons, and was run primarily by Peter Jr. and his brother Ralph. In 1931, the Kiewit brothers began selling shares of company stock to key managers to raise capital and motivate staff. This philosophy of company ownership would become a major factor in the company’s future success. When the Great Depression struck, building contracts virtually dried up, so Kiewit diverted its energy into one of the few growth sectors: highway construction. Success in this field led to expansion into nearby states, marking the beginning of the Kiewit system of decentralized district offices installed in strategic geographic locations. During the Second World War, Kiewit once again shifted tack, and acquired contracts to build barracks, army bases and airfields throughout the Rocky Mountains, along the West Coast and in the Far North. By the end of the war, Kiewit had built more than $500 million in military contracts, had been recognized by the Unites States government for its wartime contribution, and received invaluable experience in disparate geographic areas. The cold-war era saw Kiewit build a number of bases for the American Strategic Air Command, as well a top-secret air base in Thule, Greenland, the ballistic early warning system radar screens and part of the DEW (distant early warning) line of military sta- www.finning.ca REMEMBER WHEN… established geographic locations across Canada and the United States,” says Wallace. He credits the company’s locally hired staff, who know their territories, the company’s capabilities, and the local market. “Despite the ups and downs of our business, Kiewit is committed to recruit from local universities and technical schools, putting an emphasis on training and career development.” Today, Kiewit British Columbia’s biggest project is the Sea-to-Sky Highway Improvement Project, stretching 100 kilometres between Vancouver and Whistler, through some of North America’s most challenging mountainous coastal terrain. Highway 99, in this section, will benefit from 65 kilometres of safety, mobility and capacity upgrades. Work is on-budget and on-schedule, to be completed before the 2010 Olympic Winter Games. Most will be completed TRAIL BREAKERS : Left, Kiewit has always stressed employee training and development. Above, the company was instrumental in building the DEW line www.finning.ca by the end of the 2008 season, leaving some final top lift paving, landscaping, and signage for the 2009 season. Already the public is benefiting from close to 20 kilometres of four-lane highway improvements. “This is the best time in my whole 32-year career for civil engineers who want to help build Canada’s infrastructure,” says Wallace. “It has never been so good, in my lifetime, or so interesting. I’m currently heading up our design-build proposal effort, with our ConnectBC group, to win the Port Mann – Highway 1 project.” Wallace’s enthusiasm is understandable. There aren’t many other construction companies who’ve developed capabilities for contracts as large as these. “You have to go overseas to find other contractors of this financial size and capacity,” he says. Peter and Andrew, the Omaha brothers who started it all, would likely be pleased, maybe even surprised, to see how their company has evolved over the last 125 years. From humble beginnings, they spawned a construction empire that has both stood the test of time and made history. Spring 2008 • TR ACKS & TREADS 65 In 1954 Ed Green and Bart Finning assemble tractors for the DEW line tions. Kiewit also expanded its infrastructure work during the post-war years. In a joint venture with Poole Engineering Co. (now PCL), Kiewit worked on such major projects as the St. Lawrence Seaway in Ontario and “Le Métro,” Montreal’s Island Subway tunnel project prior to Expo 67, to name a few. Mining had been part of Kiewit’s operations since the mid-1940s, basically as a way to keep highway construction equipment busy in the winter. During the 1960s and ’70s, Kiewit became more active in coal-mine operations, as well as other energy facilities such as the James Bay hydro project in Quebec. Shortly after celebrating its centennial, Kiewit began looking for related business opportunities in which to invest capital accrued from successful mining and construction operations. In the mid-1980s, Kiewit purchased a controlling interest in Continental Can, Mapco (a petroleum company out of Oklahoma), Metro Fiber Systems (MFS – to install fibre-optic networks in several large American cities), California Energy (which led to investments in geothermal plants in Indonesia), and a start-up fibre-optic communications carrier called Level 3. “Kiewit has adapted to the changing world and marketplace by emphasizing its long- A Nice Stretch Ron Macmillan’s grandpa got results building roads with a horse and buggy. Today there’s no end in sight. Story by Katherine Fawcett hen settler and pioneer Archi bald Macmillan started clearing the land to build roads and homes in the Peace River Valley in the 1870s, he didn’t realize he was building a foundation for his own family’s construction empire. Archibald’s son John, now retired at 76 years old, started Red Earth Construction in 1956 with a single Cat dozer. Today, John’s son Ron, 48, is president of Macmillan Construction Ltd., one of the most successful construction companies in northern Alberta and British Columbia. With 20 pieces of Cat equipment, Macmillan Construction is active in everything from oil field work to municipal government jobs. Ron Macmillan spoke about this construction dynasty. What got you started in this business? I’d spend summers working on the road crews learning how to operate the equipment. I guess I just stuck with it. All the family has worked in this business at one time or another; my two older brothers, Archie is oldest, then Billy, Linda, my sister, myself and Brenda, the youngest. My 19-year-old works here full time. My 16-year-old and my wife also work here, part-time. www.finning.ca What project are you most proud of? Oh, that’s a hard one. There have been so many. I guess what I’m most proud of would be that all three generations of Macmillans have worked on the approaches to the bridges leading into Peace River. Grandpa worked on the first bridge approach with his horse and buggy. My father built the main highway and bridge approach and me and my brother Archie did approaches for the DMI Bridge. What sets Macmillan Construction apart? Probably our people. We’ve always had a lot of long-term people. We try to we maintain a newer, well-maintained fleet of Cat equipment to keep ourselves with the best operators and best people. And we probably pay the best wages in the industry. We are in a changing workforce. A few people are starting to retire now after 25, 30 years. We try to keep a group of people who are going to stick with us. It’s our main goal, ’cause without the employees, the machines can’t do anything. What’s your favourite equipment to operate? The grader. I ran one on the road crews for a few years, doing the finishing. You’re the guy that does the last pass across the road and it’s polished off. You get the finishing touch. What’s your most unusual project? It was when my brother Archie was here, back in the early 1990s, Shell Canada took us all the way to Anticosti Island, Quebec, to cut seismic line. They trucked our machines and our people out of Alberta all the way to Quebec. It’s a long way to go. That was pretty unusual. What’s ahead? I hope to maintain the pace I am at right now. If I could maintain the size and the good line of employees I have, I would be happy. I don’t care to be the biggest guy on the street. I’m just happy with my stress level when the company is the size it is now. At one point we had more employees. That was in the 1980s. Now there’s between 30 and 40. What’s your greatest challenge, day to day? Our biggest fight is to keep people happy, keep them so they want to stay here. That’s why we’re always upgrading the equipment. Make it so guys want to stay with us. What’s your dream project? A nice road job. It’s always good to build a nice stretch of road, a long-term or planned project. Spring 2008 • tr acks & treads 67 The Long Haul Ten years after the birth of the 797, the world’s largest mining truck is still going strong Story by Caitlin Crawshaw eoff Shantz has a photo of his daughter standing in front of the wheel of a Caterpillar 797 truck on “Bring your child to work day,” two years ago. Decked out in a hard hat and steel-toed rubber boots, the 14-year-old grins proudly at her dad. The top of her hard hat reaches barely a third of the way up the tire of the 797. At more than 20 feet high and 47 feet long, the 797B boasts a maximum payload of 380 tons. To put it in perspective, if that payload were bull elephants, the 797 could hold about 70 of them. Shantz, a senior reliability inspector at Syncrude’s Aurora mine in northern Alberta, explains that everything about the vehicle is larger than life. Even minor repairs on a truck are big operations, requiring huge equipment and lots of teamwork. “It’s pretty much a minimum of two people and, like, a 20-ton crane. There’s nothing small in this truck…on every shift we’ve got probably 30, 40 technicians just to maintain 68 tr acks & treads • Spring 2008 our fleet. It’s a big piece of machinery.” And that’s a big understatement. Shantz has seen the 797 evolve since 1999, when Syncrude began using its first Cat 797 from Finning (it was purchased in 1998). At the time he was a field mechanic, who developed a hands-on knowledge of the truck. These days, he’s part of a committee comprised of technical experts from Syncrude, Finning and Caterpillar. For the last few years, the group has worked to fine-tune the truck, improving its reliability. These days, the most recent incarnation, the 797B, runs at about 84% availability. In other words, in a 24-hour work day, this vehicle is on the road for more than 20 hours. “As far as I know, between Finning, Syncrude and Caterpillar, we’ve got the highest availability on the 797 in the world right now,” says Shantz. While the truck itself is a marvel of engineering, the idea behind it is simple, explains Finning’s Alex Colquhoun, who worked with the truck for five years as a reliability specialist in Fort McMurray, Alberta. Because of the large volumes of material that must be transported in the oil sands, it’s advantageous to have a smaller fleet of bigger vehicles. “If they wanted to move the amount of material today with smaller trucks, they’d have to double or triple the size of the fleet. They’d need three times as many people and three times as many workdays needed to do any preventive maintenance – and they’d need three times as many tires,” says Colquhoun, now Finning’s mining equipment manager. Paul Kearney, Syncrude’s manager of mining at Aurora, explains that the first 797s were used at the company’s Mildred Lake mine, and then the Aurora site when it opened in 2000. In addition to allowing the company to take advantage of the economy of scale, the vehicle has proven itself in northern Canada, he says. The truck can handle all kinds of weather, such as frozen roads in winter and soft ground in spring, www.finning.ca and still offers a smooth ride. “The machine is very popular with the operators in comfort and how it handles,” he says. Kearney adds that over the years, the truck’s evolution has allowed Syncrude to move even more materials per load. The truck has grown from a 380-ton truck to a whopping 400 tons. And Caterpillar continues to make small changes, he says. A web-based monitoring system compiles detailed information about how the equipment is functioning and allows Syncrude to recommend further refinements to maximize the performance of this maximal truck on its oil sands sites. Finning’s Brent Davis has also seen the truck evolve over the last decade. He sold the first 797 to Syncrude in 1999, when he was working as a mining account manager. “Syncrude and another oil sands company, Suncor, were getting some of the first field follows in the world,“ says Davis. “It was im- “You imagine putting your house in the back of a pickup truck and driving along; it’s quite a feeling.” www.finning.ca portant at the time because it was the first big truck in Canada in a long time and, of course, the first truck of its kind in the world.” The 797 replaced another truck the company had previously been selling, the 793C, which had a payload capacity of 250 tons. Initially, Finning sold six 797s to Syncrude, and the next year, eight more. Soon, the truck was on the fast-track to becoming an industry standard. These days, customers are purchasing larger fleets of 797B trucks – sometimes 20 or more trucks at a time. “It definitely has evolved from a new pilot test truck that we were developing for the oil sands. It’s very successful and the population is getting quite large in the oil sands now,” says Davis, now a general manager for mining marketing (Northwest Territories and the Yukon). In fact, in 2007, Finning marked the delivery of its 100th 797 to northern Alberta. Davis goes quiet for minute, searching for a way to explain the experience of the vehicle. “It’s like driving your house.” he says finally. And there’s a note of incredulity in his voice, even though he has ridden shotgun. “I’ve never driven one at that speed, but Spring 2008 • TR ACKS & TREADS 69 Service preventive maintenance check plan 1963 REMEMBER WHEN… FINELY TUNED FLEET: Each 797 contains an on-board Vital Information Management System microprocessor that monitors machine health and payload information STOPS ON A DIME: Fully loaded, the 797 achieves speeds of 68 km/h. Oil-cooled hydraulic 42-inch disc brakes bring it to a halt 70 tr acks & treads • Spring 2008 OLDER BROTHER: Today’s 797 grew from the 793C, pictured here top photograph courtesy of suncor I’ve been a passenger in a full load at 64 kilometres per hour. You imagine putting your house in the back of a pickup truck and driving along; it’s quite a feeling.” To put it another way: imagine carting 1.4 million pounds zooming with you on your drive to work. The good news is the brakes work just fine. At Caterpillar’s vehicle testing site in Arizona, Davis watched a fully loaded truck travelling at that speed “stop on a dime.” It’s no surprise: each wheel is backed by 10 to 15, 42-inch brake discs. They’re cooled by a computer system that pumps more than 1,000 gallons of oil per minute through the coolers and the brake discs. In fact, driving the 797 isn’t that different from operating a much smaller vehicle, and is a favourite with operators, says Davis. After all, at its heart, it’s just a big old two-passenger, two-door dump truck with rear-wheel-drive. “It’s like driving your car,” he says again. Yeah, right, and your car usually has 70 elephants in the back. www.finning.ca Have an Ice Day In February and March, a fleet of Cat machines plows a 600-km strip of ice, hoping that -27°C holds on a little longer STORY BY JASON UNRAU uring winter in southern Canada, icy roads call for an overdose of rock salt to tame slippery conditions, but in the Northwest Territories, ice is a good thing for transportation. In fact, for 1,400 kilometres of seasonal overland routes, the ice becomes the road and the more ice, the better. Welcome to the world of frozen highways, constructed with a flurry of activity and a fleet of heavy equipment. When the mercury bottoms out, winter roads link many communities that would otherwise be inaccessible. But they also open up a vital industry route between Yellowknife and the diamond mines to the north. In February, if you hang an abrupt and rather unceremonious left off Highway 4, some 68 kilometres northwest of Yellowknife, you’ll find yourself on the longest ice road in the NWT. Before it closed for the 2007 season, the Tibbitt-to-Contwoyto Winter Road snaked its way across nearly www.finning.ca 600 kilometres of frozen lakes and over 64 portages, places where the road crosses rocky islands or frozen arms of land between the water bodies. It’s a private road, built in a joint venture among the handful of mines along its length. For an average of 10 weeks per year this opaque, windswept trail provides a lifeline to four diamond mines operating in the territory’s remote and unforgiving barren-lands. “When this road was first built, a heavy season was 760 loads. In the ‘92, ‘93 era, we thought that was a big deal. Last year I think it was 11,600 loads,” says John Zigarlick, chairman of Nuna Logistics, the company that the joint venture partners hire to construct, maintain and manage the road each year. Zigarlick’s involvement with the road began in 1983 when he was president of Echo Bay Mine Ltd. The mine required an economical way to get machinery and supplies to its Lupin gold mine. Back then, without the luxury of GPS and radar to determine ice thickness, Zigarlick and his crew drilled holes every two or three kilometres to test the ice. With thousands of big rigs laden with heavy equipment and fuel driving to and from mine sites today, the thickness must be monitored with pinpoint precision. “We use ground penetration radar, a new innovation,” says Zigarlick. “It’s actually getting quite sophisticated now.” Road builders start reconnaissance of the route in mid-December. After they profile the ice road using amphibious Haglunds, flooding begins. The goal is to remove the insulating layer of snow and build the ice to a uniform thickness. Of course, Cat equipment is involved, in two stages; first D4 and D6 dozers maintain the land portages prior to ice road construction. Second, when the ice road reaches sufficient thickness (about 70 centimetres), the heavy 140H, 140G and 14G graders are Spring 2008 • TR ACKS & TREADS 71 Easy does it: A curve on approach to a portage helps redirect the under-ice wave roads to nowhere: Summer aerial views of portages, such as this one, look like roads cut randomly across deserted islands 72 tr acks & treads • Spring 2008 put into play to keep the laneways smooth and snow-free. Snow piling up on the ice road can be a real hazard, compromising ice thickness and strength. Many of Nuna’s offhighway plow trucks are likewise powered with Cat engines. Meet Tony Mecir, Finning’s mining account manager, whose job it is to look after the provision and maintenance of Cat equipment for De Beers and Tahera mine sites and Nuna Logistics. When ice road construction swings into high-gear in mid-January, Mecir is on his toes to ensure the 150-person crew, stationed at three camps along the route, is equipped with fully-functioning machinery. If something breaks down, Mecir must dispatch either a repair crew or, in the worst-case scenario, break down a 100,000-pound Cat to ready it for Hercules aircraft transport. “The biggest challenge is having the machines shipped to very, very remote locations where you have no access roads and you have tight time constraints,” Mecir says. “So you’re basically at the mercy of the airlines, the people who have the Hercs.” And preparing for such a dispatch is no small task. One or two mechanics are required to disassemble a machine in Edmonton for transport and a similar amount of time and man-power is necessary on the receiving end to put it back together again. “When the ice road is not there, it’s the only way to get this equipment to site,” added Mecir. “It’s not uncommon to spend $50,000 to $100,000 to get a machine into site, depending on where it’s going.” Breakdowns can range from the mundane to the unbelievable as frigid temperatures occasionally dip down to -70°C, testing the resolve of the heaviest iron. “You will see raw steel break and crack, grader blades will break, motor grader draw bars will crack and break in half,” says Mecir. No matter the temperature, Mecir and the Finning techs service the equipment. Road building commences from three camps along the route – Dome Lake, Lockhart Lake and Lac de Gras – simultaneously. According to Zigarlick, if construction were done in an end-to-end fashion, it would be www.finning.ca www.finning.ca cial burden is shared by members of the joint venture based on total tonnage divided by the amount of loads and distance travelled. Other businesses, not part of the venture, are charged on a cost-per-ton/ kilometre schedule. Last season, a total of 330,000 tons were transported and as of the start of the 2008 season, Madsen expects truckers to deliver 300,000 tons of equipment and supplies; among the cargo are Finning’s Caterpillar machines – crucial to sustaining the NWT’s burgeoning mining sector. mid-January, Tahera, owner of the Jericho mine, filed for bankruptcy protection citing insufficient funds to continue its operations. “It’s a very small percentage player in the road,” says Erik Madsen, Nuna’s director of winter road operations for the joint venture. Last season, he says, Jericho accounted for just 500 of the 11,000-plus loads. “Most likely we’ll stop the road at Lac de Gras this year, making it 180 kilometres shorter than in previous seasons.” Madsen was unwilling to disclose the cost of the ice road but would say the finan- Of ice and diamonds The Tibbitt-to-Contwoyto Winter Road serves Canada’s northern diamond mines. no rth west Jericho Mine, Tahera: When Nunavut’s first diamond mine opened, it employed 180 people. Its primary backer, Tiffany & Co, forecasted an average annual production Contwoyto of 375,000 carats, but Lake Tahera filed for bankruptcy protection in January. nu na te vu rr t ito ri es Lac de Gras Ekati Diamond Mine, BHP Billiton: Since opening for production in 1998, this open pit mine has produced over $1 billion in rough diamonds and employs 850 people. Mackay ad er Ro Wint yellowknife Diavik Diamond Mine, Diavik/Aber: This mine has grossed $100 million annually in sales, since it opened in 2003. It produces approximately eight million carats annually and employs 700 people. Lake Tibb itt t o C ontw oyt o impossible to complete the job on schedule. Weather permitting, the road reaches optimal thickness of approximately 107 centimetres about five weeks into construction, opening up the lifeline for the heaviest gross vehicle weights, as much as 194,000 pounds, to be dispatched. There’s a stream of big rigs heading to and from the mine sites that includes road maintenance crews plowing snow from two lanes (a primary inbound one and a secondary return express lane for empty rigs) and a security team monitoring traffic and speeds. Activity on the Tibbitt-to-Contwoyto ice-way is a delicate ballet of not-so-delicate machinery. Inbound rigs are released from Yellowknife four at a time every 20 minutes and must stay 500 metres apart and travel at speeds between 25 km/hr to 50 km/hr. “There are certain parts where the speed would be lower depending on the depth of the lake and thickness of the ice,” says Nuna’s Alan Fitzgerald, senior superintendent for the winter road. “Certainly, controlling truck speed is a critical factor in order to maintain the ice integrity.” Moving any faster can cause the ice to blow apart. Moving vehicles cause a wave to form on the underside of the ice, in front of the wheels. Ice breaks can occur if the truck overtakes the wave moving underneath, or if the wave hits the land portage and is deflected back into the unfrozen lake water under the ice with too much force. Despite the inherent risks, played up in the History Channel’s popular television series Ice Road Truckers, the safety record of the ice road is solid. Since the road’s beginning, one person has died – succumbing to heart failure after hitting the freezing water when he plunged through the ice in 1983. “I was a little browned off about that television series,” says Zigarlick of the History Channel’s treatment of what has been a historically safe construction venture. Since the series aired, the joint venture partnership has opted out of participating in future episodes. The partnership between Echo Bay Mines Ltd., BHP Billiton, and Diavik Diamond Mines Inc. recently lost a fourth member. In Great Slave Lake Snap Lake, De Beers: Production began in late 2007 at this newest diamond mine in the NWT. De Beers expects to produce 1.4 million carats annually and employs 500 people. Spring 2008 • tr acks & treads 73 Count On Us In the year 2083 Finning has met industry challenges for the last fifteen decades. We salute our loyal customers and look forward to providing great people, great solutions and great results for years to come. 74 tr acks & treads • Spring 2008 www.finning.ca LIMITED TIME ONLY - 75TH ANNIVERSARY MERCHANDISE AtMelton Leather Jacket - black 324.49 $ BtFleece Vest - black $ 49.99 CtSoft Shell Jacket - black $ A B C 100.99 DtBall Cap with embroidered anniversary logo $ 20.99 EtMousepad with anniversary timeline graphic 7.99 $ FtHockey Puck - black, with 75th anniversary graphic $ D E F GtBallpoint Pen black, with plunger/grip 5.99 4.99 $ HtExecutive Pen - black/yellow 6.49 $ ItTumbler - black, 16oz, with machinery graphic G $ JtLapel Pin - pewter 20.99 3.49 $ H I J VISIT US ONLINE TO VIEW OUR COMPLETE FINNING MERCHANDISE CATALOGUE he avydutyge a r. c a | ( 7 8 0 ) 4 4 3 - 7 9 6 3 Groundbreaking productivity The new Caterpillar M-Series graders are miles ahead in design innovation and represent a monumental advance in motor grader evolution. 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