The speculation centers on whether or not we will see a V shape, U shape, W shape or L shape recovery.  So, let’s start by offering a simple explanation to those four designations.  First of all, to do this we have to imagine we are looking at the line on a graph which is demonstrating any of the important economic indicators.  The stock market would be a good example. 

The V shape recovery is the easiest to explain, the line on the graph falls sharply to a point at the bottom of the downturn and then recovers quickly to the point prior to the drop, hence the line on the graph looks like the shape of a V.  We know that this is not a possible recovery shape because we have been down at the bottom for a good while now and haven’t bounced back up.

The W shape is similar in some respects; the sharp fall is followed by a “blip” upwards before it falls back again prior to the line going back up for the real upturn.  Hence, the shape of the W.  This one’s sometimes referred to as the double dip recession.  It’s not going to happen!  It’s not going to happen because we didn’t get that blip upwards! 

So, that leaves us with the U shape and the L shape and out of the two we need to hope and the decision makers need to ensure that we achieve the U rather than the L.  The U is when the line on the graph falls similar to the first part of the V, hits the bottom and then bumps along at that level for one to two years before bouncing back up again.  That period when the line is horizontal along the bottom is what turns the V shape into a U shape.  Inevitably, this scenario causes a good deal of hardship until the upturn arrives, but it is manageable. 

The worst scenario of all is the L shape.  This is when the economy drops as we have seen, but when it hits the bottom it simply flat lines for a protracted period of time, perhaps even a decade.  In modern economic times this has been seen only very rarely.  It happened in the U.S. post 1945 when the manufacture of tanks, guns, etc. suddenly came to an end, but more recently we have seen it in Japan in the 90’s.  The “experts” are currently fairly evenly split between the U and the L and as a consequence, I would certainly like to have more confidence that the governments of the European countries and that of the U.S. were as one in the way that this crisis should be treated. 

The same economic problems exist on both sides of the Atlantic.  Unemployment, depressed housing market, credit problems, etc., etc.  The reaction to this, however, appears to be totally opposite, with European governments advocating frugality through cost reduction and cuts in public spending, whereas the U.S. policy seems to be to spend, spend, spend and bring the economy back through investment. 

Now I’m not qualified to comment on the correct strategy or course of action to take in order to strengthen the economy and, “move it on up,” but I am confused and extremely concerned that two diametrically opposite approaches to the same problem could cause the biggest economic catastrophe ITHOE. 

I hope I’m wrong and I’m missing a big piece of this puzzle.  Could somebody please enlighten me?

It’s been tough, very tough, and for those leaders who have had the courage and tenacity to right size their business in front of the continual slide, they will emerge from the nadir with the fabric of their business intact.  But at what cost?  What human cost?

Well, to answer these two questions we first need to look at our responsibilities to the three power groups in any public company.

Firstly, the stockholders.  They expect us to run a viable company through the upturns and the downturns.  That’s why they invest in us.  I think we can put a tick in that box.

Secondly, the customers.  They expect on time delivery and service of a quality product, whatever market conditions prevail.  I’ll give that one a tick as well.

Thirdly, the employees, the people, the team.  They expect security, fairness, trust and integrity from the company and its leadership.  I will put a tick in this box but with some explanation.

The downturn has meant significant reductions in numbers of people across the whole business in order to qualify for the three ticks above and particularly to keep the business right sized with the market.  Within Hanson Building Products we have not been slow in making these extremely tough decisions.  I like to think that these decisions have been executed in the right way.  These decisions are taken for strictly business reasons but it should never be forgotten that they involve people.

People with families, mortgages and all the financial commitments that go along with them, not to mention the pride and dignity that goes along with being gainfully employed.  Every single time we reduce by even one person, we are creating hardship for someone and their family.  But it has to be done to secure the employment of those that remain in the company in the long term and as such keep the fabric of the business intact.  For the leader of any company, who is worthy of their position, this is probably the worst part of their job.  As I said, it has to be done, but it is HOW it is done that is paramount.  It has to be done with care, kindness, fairness and dignity.

Every leaver is a person, a person who has just been dealt a crushing blow and that should never be forgotten by the manager responsible for delivering the news.  These folks that leave us are a walking advertisement for Hanson Building Products in the following months and years and the news on how they were treated through the process will be spread far and wide.  In addition, the way that people are treated in these circumstances becomes well known within the remaining team and sends a very transparent message to them regarding what sort of leadership and what sort of company they are working for.  I cannot stress enough, people are the cornerstone of our business.  They are our most treasured resource and should be treated as such.  In this company it’s simply not negotiable, it’s a given.

For anyone leaving the company under the downsizing umbrella, the reaction to the news never ceases to amaze me.  Sometimes we see bitterness or anger but generally I think this represents a reaction to the shock of hearing the bad news.  More often the reaction is one of unparalleled dignity, understanding and grace.

One such guy emailed me this week.  I’ll leave you with the body of the note for you to make up your own mind regarding my point:

“I am 32 years old and have been in the concrete pipe and precast business for 14 years. I started from the bottom (cleaning mixers, shoveling packerhead pits, operating pipe machines, loading trucks, leading crews, pretty much done everything) to managing multiple plants. I was hired by Hanson in 2006 by Pat Kelly and Sue Tannenbaum. I was the Plant Manager of the Apple Valley, MN plant and met you in 2006. The plant was not in good shape. I worked extremely hard to turn the plant into something Hanson could be proud of…which I think I did a very good job. In two years we cleaned, painted, organized and improved every aspect of the plant. It was exceptional! I was promoted to Ohio Area Operations Manager by Mike Markey and Eric Wheeler in October of 2008. All of the Ohio plants were in need of serious change. Bringing enthusiasm, energy, and a new way of doing things we were able to improve on cleanliness, quality, CARING about what we do, and the Hanson image. We were on track to be the supplier in Ohio. I was part of a headcount reduction in March 2010 and needless to say I was very disappointed. I loved working for Hanson. I was 100% loyal and wanted nothing less than Hanson to be the best. I will always think of Hanson as mine. I will always think of Hanson as home. I am writing this email to let you know that I wish you and Hanson the VERY best in the future and I hope that Hanson gets better everyday! If you ever need a young manager who is full of energy and passion for the pipe and precast business, and who is a complete “Hanson” man I will be there!!! Again, I wish you and Hanson the very, very best!!!

Keep up the blog, I read it all the time!!!”

What a great guy!!  I wish him every success in the future and thank him sincerely for reminding me of just what a precious resource our people are.  Treat them well, they deserve it!!

In 1789 President Thomas Jefferson wrote, “No man can, by natural right, oblige the lands he occupied, or the persons who succeed him in that occupation, to the payment of debts contracted by him.  If he could, then he might eat away at the usefulness and value of the lands for several generations to come …”

That guys, was the President of the United States talking about the need for sustainability 230 years ago.

Okay, let’s get more up to date.  President John F. Kennedy stated in the 1960s, “It is our task in our time and in our generation to hand down undiminished to those who come after us, as was handed down to us by those who went before, the natural wealth and beauty which is ours.”  It couldn’t be plainer, could it?  It’s another plea from a President more than 200 years later to embrace the culture of sustainability!!

Let’s get right up to date, President Barack Obama, into the 21^st century.  “Global warming is real, is happening now and is the result of human activities.  The number of category 4 and 5 hurricanes has almost doubled in the last 30 years.  Glaciers are melting faster; the polar ice caps are shrinking; trees are blooming earlier; oceans are becoming more acidic, threatening marine life; people are dying in heat waves; species are migrating, and eventually many will become extinct.  Scientists predict that absent major emission reductions, climate change will worsen famine and drought in some of the poorest places in the world and wreak havoc across the globe.  In the U.S., sea level rise threatens to cause massive economic and ecological damage to our populated coastal areas.”

A prelude to stringent and sweeping legislation on sustainability and the environment?  I think so!!!!

Here’s a quote from Richard Manning, July 2010, “I predict that because of the nation’s apathy towards sustainability in the past, coupled with the slow realization that becoming more sustainable is not an ‘if’ but a ‘when,’ we will see more environmental and sustainability legislation in the next 10 years than any other legislative topic.”

Guys, we need to, as individuals as well as businesses, embrace these issues before laws become enacted that will represent the biggest change to our lives ITHOE.

The protocol was followed.  Any incident of this sort has to be reported directly to me, the President of the company, in order that every level of the organization is aware of what happened, a full investigation has taken place and every step taken to ensure it doesn’t happen again.  To me, this is still not enough.  The fact is, somebody has been hurt whilst at work, and that is just not acceptable.  I’ve said many times before and, no doubt, I’ll say it many times again, that everyone has a given right to return home from work in exactly the same condition as they arrived, albeit a little more tired!!

I regard safety as our top priority.  So, I ask myself, why do these accidents happen?  We spend money on safety equipment, on signage and protective clothing.  We constantly and regularly train employees on all matters regarding safety.  We communicate at all levels, hold safety meetings and listen to opinions from everyone present.  So why do these accidents still happen?  My conclusion is that if we can put a tick in all the boxes mentioned above then it clearly becomes a people issue ~ a behavioral issue, and therefore an issue of culture.  So if it’s culture, let’s look outside the workplace for a minute or two and look towards the roads.

I live in Texas.  I am proud to say in every sense I am a Texan.  I have embraced the culture as much as I can, with one exception.  Driving!!!!   The things I see on the roads every morning and evening are mind blowing.  Suicidal!  Crazy!  Lane hopping, speeding, racing, cutting other cars off at intersections, to name just a few.  Now these actions often end in horrific accidents that I see reported nightly on FOX 4 News with deaths and injuries but the next morning the whole fiasco starts over again.  These people I guess have all passed their driving test.  I guess most of them have promised their loved one before they left home that yes they will be careful on the road.

The highway I use for my commute is a 70 mph limit and I have cars passing me at 85 – 90 mph.  Unless they all spot the inevitable police car and all the traffic reins back to 70.  Does that mean that if we could have a police car at regular half mile intervals along a road that the traffic would always stick to the speed limit and the driving practices would be a lot safer?  Experience and observation tells us that, yes, it would.

What does that tell us about the behavioral traits of the average person on the road and how do we translate this example to the workplace?  One would think not getting hurt would be an individual’s biggest priority ITHOE but apparently this is offset by human nature’s natural tendency to take risks.

Recognizing this, I believe in the workplace we have to continue to employ all of the practical tactics that have been mentioned but we do also have to have the metaphorical police car at every point in the workplace too.

That means that every individual in the workplace, at every level, has to be aware of their safety and the safety of their co-workers every minute of the working day.  They in fact become the police cars.  There is in my view no hierarchy, no boss or subordinate status when it comes to safety.  Everyone’s’ life is precious.  The culture in the workplace must reflect this.  Never, ever be afraid or reticent to point out to anyone, an issue of safety in any of our facilities.  Let’s all join the safety police and ensure that when we have control, nobody puts themselves at risk.

Nothing, absolutely nothing is more important than the safety of every member of the Hanson Building Products family.

Freedom and our health are probably the two greatest possessions ITHOE.  Because of this I will be celebrating the 4th of July weekend too.

I urge y’all to consider this.  Back in 1776 a huge portion of the U.S. population was immigrants from across the pond, and if they weren’t probably their parents or grandparents were.

To the person this year who inevitably wants to tell me that, “This was the day we kicked the Brits out,” should I calmly respond by informing them that in fact, “this was the day that the Brits kicked the Brits out!!”????  The ones that got kicked out were the tyrannical Lords and Barons of the government of the day.  Whereas the ones who prevailed were just normal people with their own history fighting for their freedom against oppression.  Ordinary people – just like me!!

School predominantly seems to be a time for learning the academic necessities but with the summer camp offerings the subjects are vast, all whilst the young people are having a great time.  Young folk often find it difficult to link the words “learning” and “having a great time” in the same sentence so the summer camp phenomena is a great experience with the take-away being learning can be fun. 

The benefits from many of these camps I’m sure can be numerous and include such issues as physical fitness, socializing, teamwork, sharing and gaining confidence.  Learning what it means to win and learning what it means to lose.  All of these things are important in life, especially on the approach towards adulthood.  It can be argued that lessons of this nature are equally as important as reading, writing and math. 

Following on from this argument is the question, “Do our schools really prepare our offspring for the full range of experiences, stresses and problems that they will face when presented with the big wide world?”  I think not!!  True, academic standards and achievements are growing constantly as the years go by.  That is simply not enough. 

Kids need to know what they will be faced with all too soon and the summer camp marvel seems to be one way to cope address this.  The downside I guess is that not every family can afford the luxury of summer camp.  This is where the parental effort needs to come in to play with communities and other parents who work. 

It should not be beyond the bounds of organization to recreate a low cost summer camp option at home with some communication, cooperation and enthusiasm being shown by like minded parents and before we know it we have games of soccer and softball being played or putting together a play or musical with the young folk in the community all taking part.  It’s not easy, it’s tough but I believe this sort of thing contributes more to the successful path to adulthood than anything.  The alternative, I think is quite disastrous.  Sitting at home all day, eating fast food, watching the TV and playing computer games is not the way we want to prepare the next generation for adulthood.  It’s also where childhood obesity is bred and a sedentary lifestyle like this leads to poor health and a lack of fitness before a young person even reaches adulthood. 

It’s a long summer in front of us.  For those fortunate enough to take a trip to the ocean, enjoy!  The break lasts for nearly three months, so use it wisely, use it to bring enjoyment to all the young people but also use it to bring some fitness, character forming and learning into their lives outside of the school environment.  The opportunities, the facilities that are all around us are the best ITHOE; let’s make sure we use them to the fullest. 

Both of my offspring are fully growed (I do have three amazing grandchildren, hi Soph, Hannah and Candy), so what does the long summer school vacation mean to me?  Well I’ll tell you!!  It means a great commute to and from the office with nothing like the usual traffic on the roads!!!!

Being a part of this industry for more than 35 years, my team and I take responsibility for the quality of products we manufacture and expect the same of other companies. Lack of integrity, responsibility and obligation to our nation’s backbone, will prohibit our nation from achieving a sustainable infrastructure. There needs to be a change in the way manufacturers are testing and promoting their pipe products.  Decision makers such as city officials and specifiers have the power to influence testing procedures and the products chosen to transport our most precious resource, water.

One recent step in the right direction is the U.S. Army Corps of Engineers’ (USACE) acceptance of the American Concrete Pipe Association’s (ACPA) proposed post-installation deflection testing specifications for all projects that allow use of flexible/plastic pipe.  Pipe deflection refers to the amount of deviation or degree of bending in the pipe due to applied stress or weight.  Now, all HDPE and PVC pipe must have a deflection rating of no more than 5 percent, versus the former 7.5 percent. The revised specifications by the USACE reflect the continuous increase in breaks and cracking well before pipes are reaching their intended life expectancy.  Typically, deflections exceeding five to seven percent constitute structural failure and require removal.

So why are we seeing pipes with 50-, 90- and 100-year service life break in only one year? Well, while breaks can and will happen before the intended life expectancy, this increasing number is due to improper product testing, claims and careless specification. But perhaps those choosing what products we put in the ground either aren’t as concerned with these facts, or are too trusting of a promised service life and products that show “economical benefit.”

It is extremely important that all pipe products meet every specification before being put in the ground.  This is especially true for flexible pipe, which unlike rigid pipe such as concrete or steel, depends heavily on factors such as soil condition and the installation process in order to be successful. 

Every manufacturer should take responsibility to conduct the proper tests and assessments in order to produce quality products that support our infrastructure and a sustainable future. Specifiers must be knowledgeable about material properties for all pipe products in order to prevent leakage in stormwater installations.  While both flexible and rigid pipe have the ability to perform properly, both products need to be adequately assessed to determine which option offers the best and most efficient operation.  Dating back to the Roman Empire, concrete may be the “older” option, but it has maintained the most impressive performance record as a strong and durable product ITHOE.  With continued advancements in design, technology and analysis, it is also an environmentally friendly and sustainable choice.

It’s not about saying one product is better or will last longer than another – it’s about choosing the right product for the longevity of our infrastructure and environment and for the specific job and avoiding unnecessary risks.  Sustainability is the responsibility of all manufacturers, city leaders and citizens.  We must continue to modify our products and testing to ensure satisfactory quality that aligns with engineering standards and economic analysis.

We are a nation of complainers.  No, that’s not being anti-American because it strikes me we are a world of complainers.  In just about every conversation you tune in to, somebody is complaining about something.  The weather appears to be in the number one slot.  It’s never right, is it?  We complain about the traffic when we’re driving to or home from work.  But, wait a minute, aren’t we the traffic too? 

We complain about a whole list of things, not just the weather.  Think about it.  There’s the boss, the job, the in-laws, the price of gas (and everything else that we buy), the government, our “favorite sports team,” the house, the yard, our weight, healthcare and on and on and on. 

We all seem to spend more time complaining about something than conversing about anything else.  Why do we do it?  The list of complaints is a long one; it goes on forever, but what about all of the good things in life? 

What would our day be like if every time we complained about something we made a concerted effort to recognize the fact and end the conversation with something that we felt really happy about?  Something that was wonderful.  Something that meant being pleasant and handing out praise to someone. 

In the scheme of things we are not put on this earth for long.  Why do we waste that precious time in incessantly complaining about everything?  However tough life seems sometimes, we all have a lot to be thankful for, a lot to smile about and a friendly, smiling conversation can, it is said, even contribute to us living longer. 

So, let’s stop the complaining!  Let’s look on the bright side!  Refer to our glass as being half full instead of half empty! 

Start to become the happiest generation ITHOE!!!!

Did any of these folk stop and think what they were saying?  Let’s all have a great weekend because millions of people in our armed forces have died for us!!!  There has to be something wrong with this logic.  I’m all for holidays.  I’m all for the Memorial Day concept of respect and remembrance. 

But to link it together with let’s all have a great time is, in my view, the biggest insult to those who have died ITHOE. 

Someone please tell me I have got this wrong!!

All in all we will return to work next Tuesday feeling refreshed with tales of what a great weekend we had.  But how many of us will take the time to stop and think what the weekend is really all about, whilst we are all enjoying ourselves?  Who made it all possible and why? 

Well, from a historical point of view Memorial Day was originally called Decoration Day and had many separate beginnings across many different states during the 1860s.  It was really created in the aftermath of the Civil War and was brought about by the laying of flowers on this particular day at the graves of those who died in that conflict. 

In 1868 it was formalized by General John A. Logan, who stated that Memorial Day was not about division but about reconciliation, a coming together to honor those who gave their all.  The “division” reference was obviously related to the Civil War.  Unfortunately this lost its relevance through the passage of time due to the number and enormity of wars that followed and the ensuing loss of life. 

The 20^th century saw many conflicts across the world that required servicemen and women to give their all in distant countries in the name of peace and freedom at home.  World War I, World War II, Korea, Vietnam and now the Middle East have probably been the biggest events to take the lives of our forces in the greatest numbers.  They fought, and continue to fight in the name of freedom, and whether or not we agree with the political side of these conflicts we should still recognize that those at the front line are laying down their lives for us. 

These statistics we hear on the TV news on a nightly basis of how many losses we have recently suffered in conflict should not be seen merely as numbers.  Every one life lost is a son or daughter, a husband or wife, a loved one of a family somewhere.  Because of the sacrifices that have been made, we have been given a long weekend holiday. 

Whilst we are all enjoying ourselves let us all, even if for a moment, remember, appreciate, give thanks and honor those that sacrificed their lives so that we could not only enjoy a Memorial Day weekend but also live our lives in peace and freedom. 

The sacrifice they have made for us is the biggest ITHOE.