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Russian precast association comes of age

After more than 15 years of free market reforms in the post-Soviet era of Russia, that country’s industries have had to learn how to be self-sustaining and independent as more corporate leadership goes over to private ownership. Under the old system, there was no need for associations as we know them in the Western world that would bring individual sectors together as a unified voice. Under the new system, however, these same sectors are now learning the value of trade associations.

During a recent visit to St. Petersburg, Russia, for the International Concrete Conference and Exhibition (ICCX), NPCA’s MC magazine interviewed Robert Luchinkin, director of the Precast Concrete Manufacturers Association based in St. Petersburg, through a translator to find out about the similarities and differences in our associations. Here is a compilation of Luchinkin’s remarks as translated.

“We established our association in 2001 during the time when Russia was still undergoing the transitional period from planned economy toward market economy. The old system – the whole economic structure and all the industries – was dominated by the state and centralized. With the new times, we began experiencing problems, so this is when we set up our association, the Precast Concrete Manufacturers Association.

“So the market economy dictates its own rules. It’s not like we used to do in the Soviet time when our directors would receive orders from above. Now we have been given a free hand in many respects. So it’s a matter of sink or swim now.

“The situation here has changed dramatically. A number of people were totally unprepared, so it’s a challenge, especially for the older generations. That’s why some people had to quit, and their businesses had to challenge and refresh their personnel, including the managers. You can see now what represented that old generation. I resigned in 1999, so our association integrated 12 manufacturing facilities, and most all of them are headed by young guys in their late 20s.

“But those new directors are very experienced guys despite their age. They know a thing or two about economics, and they know how to sail in rough seas. They know a thing or two about modern management techniques.

“Five of us former Soviet directors got together in 2000 and had already quit at the time, and we made a decision that it would be very difficult for us to work independently in the construction market. We made a decision of getting together and setting up an association, because we thought it would be better if we worked together. Given all those shared common problems, if you team up it is easier to overcome all those hassles engendered by the new situation.

“Here in Russia, there is a law called “the law about noncommercial associations,” and for us that is our basis.

“So April 2001 saw a new association established here, and this association began a legal entity in August of the same year. So we will celebrate our fifth anniversary in August of this year. The challenges we are facing now are first of all proprietary problems, technological problems, coordination and acquiring new machinery.

“We made a special decision that only our big enterprises have the right to join this association, and all those who manufacture on a high level and their production meet all the requirements. The smaller manufacturers in this region were excluded because they don’t provide high-quality products – their main task is to produce cheap products in the shortest time possible. There are 12 members now, and they are widely known for their high-quality products.

“Probably the most efficient way to develop a relationship between our associations for the beginning is establishing an exchange program, where your officials come here and our officials go to your country. And of course information exchange is the second priority.”

The look ahead

The precast concrete sector of the construction industry is now in the 14th year of a tremendous growth cycle that is continuing through mid-2006. But there are storm clouds ahead, according to Ty Gable, president of the National Precast Concrete Association.

Addressing the spring member meeting of the California Precast Concrete Association in Shell Beach, Calif., April 27, Gable said industry growth that started in 1992 may be threatened in the coming years.

The highway bill passed by Congress last fall and increased spending on environmental projects like sewers and wastewater treatment plants will lift the industry through 2006.

“But there are storm clouds on the horizon,” Gable said. “Precasters are facing continued downward pressure on pricing, increasing competition from other materials and a shortage in labor to fill production jobs.” Those three forces, combined with sharply escalating prices for steel, aggregates, diesel fuel and cement, will make it harder for precast manufacturers to turn a profit. In addition, a looming slowdown in housing starts could throw the entire U.S. economy into a recession.

Gable said the companies that succeed during a recession are the ones who are willing to “go ugly early.” A laser focus on knowing and controlling costs, reducing waste and appropriately pricing products will become more critical in the future, Gable said. The companies that can quickly adapt to a shifting marketplace with discipline and innovation can still thrive in a slumping economy. Attracting and keeping talented employees, applying technology to reshape business and meeting contractors’ demands for just-in-time delivery are also keys to success, he said.

NPCA offers PQS online

Now you can learn the key fundamentals of precasting anytime and anywhere with the launching of NPCA’s PQS Online, a Web-based program that covers material presented during the association’s Production & Quality School.

Developed through the leadership of the Education Committee, PQS Online allows precast personnel to discover the steps of the manufactured concrete production process without ever having to leave their plants. The new training module offers those unable to travel to PQS classes held throughout the country to take the course from the comfort of their computers.

Kirby O’Malley, president of Garden State Precast Inc. in Farmingdale, N.J., believes the new PQS Online program represents a significant opportunity to offer expanded training to plant personnel across the country.

“NPCA educational courses are by far the best bang for the buck,” said O’Malley. “The option of offering the PQS course online allows plants to train multiple employees who might not otherwise have the opportunity to participate due to budget issues.”

The PQS Online program is available in nine chapters. The chapters may be purchased individually or as an entire set. The cost is $25 per chapter and $199 for the nine-chapter set. As with the standard PQS course, the completion of all nine PQS Online chapters satisfies the educational requirement of NPCA’s Plant Certification Program.

You can explore everything that online learning has to offer by signing up for one PQS Online chapter at no charge. Visit www.precast.org/portal to learn more and to preview a portion of the PQS Online course. Use the discount code PRECAST to redeem a free chapter for all of the employees at your plant. This special offer is valid through Dec. 31, 2006.

Please contact Marti Harrell, NPCA training manager, at (317) 582-2321
for additional details, or visit www.precast.org/ education for more information about traditional classroom training.

NPCA Exhibits at AIA National Convention & Design Expo

NPCA recently descended upon the “City of Angels” to exhibit at the American Institute of Architects (AIA) National Convention & Design Exposition held June 8-10 at the Los Angeles Convention Center. This year’s event was a record breaker for AIA, attracting 24,600 registrants from the United States and throughout the world.

The AIA National Convention offered NPCA the opportunity to showcase its newly launched online architecture education course to approximately 575 architects and building professionals. The important post-convention follow-up efforts of providing additional information and building upon the partnerships established at the event are now underway.

Sponsoring NPCA’s presence at the show were C.R. Barger & Sons Inc., Meadow Burke and Arto Brick California Pavers.

Corps of Engineers to Require NPCA Plant Certification
New Corps guide specification affects underground drainage products.

The U.S. Army Corps of Engineers now specifies that all precast concrete in drainage structures must come from NPCA certified plants. The new military guide specification went into effect on all drainage construction bids on or after July 1.

The military guide specification brings NPCA plant certification to a new level of acceptance nationally that could echo throughout the drainage industry as other states and municipalities follow the Corps of Engineers’ lead. “This is a turning point,” said Ty E. Gable, president of NPCA. “The specification is the first step toward a sweeping, national acceptance of the NPCA Plant Certification Program.”

The new requirement, published July 1 by the U.S. Army Corps of Engineers in its Unified Facilities Guide Specification (UFGS), imposes strict requirements on precast concrete drainage projects for the U.S. Army, U.S. Air Force, U.S. Navy and NASA.

NPCA currently has 292 plants in its certification program. Gable said the military guide specification levels the playing field among precast concrete manufacturers. “Precasters can look at this specification as another way the precast industry polices itself and makes itself stronger,” Gable said.

Excerpts from NPCA’s Guide Specifications for Precast Concrete Products are virtually identical to the underground precast specifications found in the Corps’ new UFGS version. A collection of specifications, UFGS is considered the most credible guideline for civil and military construction in the United States.

Gable said that the ultimate goal is to create a uniform, nationwide precast concrete quality control standard where regulatory and specifying agencies adopt NPCA Plant Certification for all precast concrete construction. The UFGS adoption of NPCA Plant Certification for precast concrete drainage structures has been a giant step toward that future.

Covered products: The U.S. Army Corps of Engineers Unified Facilities Guide Specification covers the requirements for precast non-prestressed concrete products used
for underground construction. Those products include but are not limited
to sewage systems, subdrainage systems, storm drainage systems,
utility structures and communications structures.

Literacy training funded by New Jersey grant

At a coastal community college in New Jersey, workers from the precast concrete industry learn English as a second language while getting paid for their time away from work.

At Garden State Precast in Farmingdale, N.J., 17 employees returned to the classroom for an 80-hour stretch of coursework spanning 20 weeks to learn basic English language skills. The opportunity stems from a literacy grant from the New Jersey Department of Labor and Workforce Development. The basic language upgrade helps workers advance career paths and personal communication skills.

“Interestingly enough, these employees taking advantage of the sessions do not all have Spanish as a first language,” said Kirby O’Malley, president of Garden State Precast. “That is the first misconception. People expect these students to be Spanish-speaking, but we have Russian and Eastern European employees cycling through this literacy training.”

The grant-funded school, Ocean County College, requires each company participating in the program to pay the employees for time spent away from their jobs while working in the classroom.

For Garden State Precast, this opportunity is win-win. “Our hope is that our employees will have a better English language understanding and communication skills both at work and in their personal lives,” O’Malley said.

Grants of this type may be available in other states. To see if literacy grants are available in your area, contact your state’s Department of Labor.

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