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[Video] Redman Construction Spotlights Top Subscription Service Advantages

 

Customer Profile: Redman Construction Inc. is a family owned and operated construction company based in Brockport, New York, U.S. Founded in 1992 by Jack Arend and Scott Arend, the commercial earthwork and utility contractor works primarily in Western New York, between Buffalo and Syracuse. 

Business Challenge: Capitalize on technology through a more measured investment strategy 

Solutions:

Benefits:

  • Greater efficiency/productivity
  • Easier talent development
  • Lower long-term debt ratios

Worker carries survey equipment with machines in background

For Redman Construction Inc., a family-owned and operated contractor based in Brockport, New York, technology is essential to productivity, workforce development and growth. The only deterrent has been the high cost of entry—though that’s begun to change with the help of construction technology subscriptions. 

Founded in 1992 by Jack and Scott Arend, the commercial earthwork and utility contractor works primarily in Western New York, between Buffalo and Syracuse. The company adopted GNSS technology about 10 years ago, first with grade control on a dozer along with a base and rover. That investment has grown to four dozers and three excavators, all running 3D machine control, a commitment that has contributed to a jump in annual revenue from $1 million to $8–10 million.

Now, the firm is ready to make its next technology-enabled leap with help from the Trimble Works Plus Subscription, a flexible program that lets contractors invest in the latest hardware and software through a fixed monthly fee. Working closely with local dealer SITECH® Northeast, the company relies on the subscription for installation, hardware and software upgrades of its GNSS-enabled equipment, as well as its base station and rovers. 

JP McKinley, vice president at Redman, summed up the advantages of a subscription program in one word: opportunity. 

Surveyor in front of excavator with machine control

Always Current, Connected
With an increasingly technology-enabled fleet and field operations, uptime is a common concern for the Redman crew.

McKinley points to an ongoing project where Redman is tasked with the earthwork and utility preparation for a multi-phased, 150-acre development that includes single family homes, townhomes, apartments, healthcare facilities and commercial developments. 

“It's a daunting task to manage a project of this scope and scale, with major cuts and fills,” he said. “We’ve moved approximately two million yards of dirt on the site. We’re moving dirt, almost four times as much as we did 15 years ago, and we're more profitable because of technology, despite increased labor, fuel and material costs. I don’t know how we would have done this project without technology—and now there’s peace of mind knowing that our team has the most current systems.”

With the subscription program, Redman’s equipment is covered by a full factory warranty along with the repair or replacement of accidentally damaged hardware. 

McKinley added, “Our SITECH team is the best. If we have a question or concern, they’re there. And if there’s a software or hardware upgrade, we have it immediately, along with training.” 

Energized Workforce
excavator operator in cabMcKinley also believes that the ability to invest in technology with greater ease is helping manage a reduced labor pool.  

“Sure, we can do more work with fewer people thanks to technology,” he said. “But just as importantly, we can be very productive with less skilled operators and field crews. The uptime to train a new operator is much shorter, and we believe that will help us attract young operators as well.”

While attracting a new generation of workers is important, a driving factor for technology investment is safety. He explained, “For instance, the advantage of machine control for pipework trenching is that we don’t need someone hovering around that ditch to make sure the grade is correct. The 3D system assures us that we’re right to design specifications. It’s awesome.”

Down the road, McKinley is keen to take advantage of the upgrades that are an integral part of the subscription program. 

“We’ll get those upgraded systems at no additional cost and with no work on our part. SITECH will take care of it as part of the program,” he said. 

Excavator with machine control loading a truck

Greater Investment Opportunities
While the advantages of technology such as machine control are increasingly well documented, the emerging challenge is to deliver a truly connected digital site, one that provides seamless communication of data between the office and the field. For Redman, the subscription program is a way to build toward that digital ecosystem while keeping its long-term debt ratios down. 

“For any contractor, it’s a continuous effort to keep bankers, accountants and bonding agents happy because they all want different things,” McKinley said. “Whether it’s low tax liabilities (accountants), cash (bonding agents) or loans (bankers), the goal is to keep our long-term debt ratios at a minimum. With a small company like ours, that can be a challenge. Subscriptions offer a brilliant solution for all three groups because we’re minimizing our upfront costs. We’re leveraged less, which improves our overall credit.”

Because of a more predictable and stable cash flow facilitated by the subscription program, Redman was already able to purchase a second rover and has its eye on more machine control systems down the road.

When asked to summarize the advantages of the subscription program, McKinley said, “Put simply, it allows me to sleep better at night. With the subscription, budgeting equipment costs in bids is easier, so we’re more competitive. I don’t have to worry about outdated software or communication between systems or that the technology we just spent thousands of dollars on is now obsolete. It’s one less thing that I have to worry about in my day-to-day tasks. That’s a subscription advantage that is irreplaceable.”