Las Vegas Business Press, NV
Monday, March 21, 2005
Eastern European contractors visit local company
The SABIT delegation takes a break from its meeting at American Asphalt and
Grading Company.
BY IAN MYLCHREEST
BUSINESS PRESS
Executives at American Asphalt and Grading Company (AAG) found
themselves last week leading a seminar for a group of road construction
executives from the former Soviet Union. The group from Armenia,
Georgia, Belarus and Ukraine were participating in the U.S. Department
of Commerce’s Special American Business Internship Training (SABIT)
program.
The Russian-speaking executives were in town for the CONEXPO trade
show but took a morning to visit the offices of AAG where they were
given some insights into the road construction business in Clark
County. The SABIT tour was part of a month of discussions with
construction executives and public officials across the country.
AAG’s program for the visiting Europeans included meetings with
senior executives of all divisions including construction and
equipment. Jim Atkins, AAG’s vice president of the public works and
commercial divisions, led the discussions describing typical patterns
of road construction and funding from the various government bodies
for different types of roads. He also described for the Europeans
unfamiliar with Nevada’s native soils, the kind of chemical and other
treatment to lay a road bed as well as the road bed of crushed rock
compacted to about 90 to 95 percent density. The participants grasped
that, although they were unfamiliar with the configuraton in Atkins’
whiteboard illustration.
Also on the agenda were the various flood control mechanisms that
are part of the construction process. Those two were a surprise for
engineers more familiar with soils that absorb rainfall.
Perhaps most perplexing for the visitors was the funding mechanisms
for different kinds of roads. Gasoline taxes paid for construction,
explained Atkins, but some of the SABIT guests seemed perplexed
by distinction between the national highway system of the federal
government and state and county programs to build main roads.
Even more difficult was the concept of suburban roads that are built
by developers to city or county specifications, but then turned over
or “dedicated” to the local authorities after they are built. Atkins
explained that developers typically grade and prepare a site and
install infrastructure, including roads, as part of the development
costs.
After some questions and more discussion and the occasionally quizzical
look as the translators struggled to keep up with the lively back
and forth, the concept was grasped. Eventually, one attendee asked
if the roads were utlimately paid for by the buyers of houses and
other buildings in new developments.
“Absolutely,” Atkins replied to the translator who relayed the message
to the visitors. “Now you understand capitalism!”
The group seemed gratified as Atkins explained to them that AAG had
about 50 percent marketshare of grading in the valley and 30 percent
marketshare for paving asphalt.
SABIT is a joint initiative of the U.S. Department of Commerce and
the private sector to promote market access through strong commercial
partnerships. Its training programs, according to the DOC Web site,
directly support Eurasian economic and civil society development by
encouraging market-based reforms, while generating valuable export
and investment opportunities for U.S. industry.
“Expanding commercial trade ties is critical to the economic well-being
of the United States as well as to the continued growth of the
countries of Eurasia,” says Tracy Rollins, director of SABIT. “The more
we expand trade, the more we foster democratic values and stability
abroad, all of which are vital to our security.”
AAG was found, says Erin Schumacher, an international trade specialist
and program recruiter at the DOC, through Internet research. “We
have to fill the time with company and site visits,” she adds. Atkins
says he was called by the DOC and was happy to oblige in showing the
Europeans an American contractor at work.
Atkins says his company has no ambitions. “No, we really don’t see
it opening up business opportunities for us. We’ve got all the work
we can do here.”
The delegation operated with two translators, who took turns in
explaining the Americans words in Russian. Schumacher says any Eastern
European over 30 is fluent in Russian because they were forced to learn
it under the Soviet regime. “We had to choose one language,” she says,
“and they all knew that.” The delegates wore wireless transmitters
and earphones to better understand their translators.
The SABIT delegation also visited Washington, DC, Boston and
Phoenix. They also undertook private visits to construction sites to
see American contracting in action.
Since 1990, over 1,000 organizations have hosted over 3,300 trainees
through SABIT, which has been credited with facilitating $300 million
in export revenues.
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