Summer 2007 Volume 14, Issue 3       Articles On This Page >>> Have something  you would like to see published in the Frattalone Scoop?   If so, please contact Shelly in the office.   From the Corner Office (1) Safety Column (2) Project Profile (3) A Ride to Remember (4)      Events Holiday Schedule (6) Company Meetings (9)  Frattalone Golf Tourney (7)         Notices Employee of the Month (5) Congratulations (8) Thank you Lori Bemis (11) Tickets and Timecards (10)

1. From the Corner Office

With the 2007 construction season already more than halfway complete, it will go down as one to remember. As everyone is aware of, the residential construction market has been pretty much nonexistent. Although we do not perform a large percentage of our work in this market, it is indirectly affecting us in a negative manner. Most of the contractors that had great success in this market over the past decade now entered into our primary market, commercial construction. Although the commercial construction market has been strong this year, we now have much more competition for the work. Instead of having the traditional three to five companies bidding on projects, we now see ten to twenty on each bid.

With this challenge, we see opportunity. Fortunately, over the years we have established strong relationships with owners and general contractors. We have been able to offset our market share lost in this area by expanding geographically. Over the years we have become more and more successful in being awarded and completing jobs in Wisconsin. What first started out in the western part of the state, has expanded to central and even the eastern side.

We are also just finishing up a project in Iowa and are going to take a “leap of faith” and begin a project in Roanoke, Virginia in September. In addition to these projects, we have also recently bid work in Las Vegas, NV and St. Louis, MO. Although we want to continue our strong presence here in the Midwest, we need to continue to look for opportunities such as these to keep our company strong. Diversification allows companies to continue a healthy and steady growth through the ups and downs of the economy. Thank you for all of your hard work during this season and enjoy the rest of your summer.

Best Regards,

Nick Frattalone, Chief Financial Officer 

  
Canadian Days Parade - August 5, 2007 with Grand Marshals Frank & Sherry Frattalone

2. Safety & Training Corner

Wow, it’s been a HOT summer! Along with the heat, came the drought which, for the most part, permitted us to complete work uninterrupted. Fortunately, we have not had any reports of heat stress or stroke due to the heat. We have, however, had more than a rash of injuries and losses.

Currently, we have already incurred $460,000 in claims for our present policy year. Incurred means the total of paid and reserved claims. Unfortunately the policy year is not even half over (Policy Year is 4/1/07 – 3/31/08). Granted, the majority of these incurred dollars are from one claim, they still have a major effect on the future and profitability of Frattalone Companies, Inc in 2007.

To put it into perspective, assume with the present tight market we earn a 2% net profit margin on the work performed. At a 2% profit margin, we have to complete $23,000,000 worth of work for FREE just to pay for the $460,000 in incurred losses ($460,000 / .02 = $23,000,000). To me, this is scary. When looking at these numbers, we cannot have any additional losses. ZERO injuries are the expectation and we all need to be working together to get there. During tough times, taking one short cut to save a few pennies could be detrimental to the company. Without a healthy workforce, it is very difficult to make our equipment operate efficiently.

On a training note, keep an eye out for the training letters put out by your union in the coming months. Haz-mat classes tend to fill up quickly so get yourself registered when the first opportunity arises. As a reminder, all employees working on Haz-mat sites are required to complete the class before actually working such a site.

Have a safe and productive remaining summer!

Thank you and be safe.

Josh Bernhard, Safety and Training Director

3.Project Profile -Virginia

This fall we will begin working with Ryan Companies on a site development project for a Gander Mountain and Camping World in Roanoke, Virginia. The job site is located 3 hours east of Richmond, Virginia and 3 hours north of Charlotte, North Carolina. This 45 acre site will consist of 360,000 cy of excavation and 75,000 cy of rock blasting, along with tree clearing, utilities, a 20’ x 950’ long retaining wall, asphalt, curb and gutter and traffic signals.

Dan Sebesta is the superintendent on the project. His dirt crew consists of Jeff (Vinny) Viner, Joe Banttari, Nate Alm, Mark Klous, Rick Hays and Travis Reinert. Steve Balfanz is the Utility Superintendent. His crew consists of Mike Ahlberg, Josh Dickhausen, Chad Clausen and Jim Vickaryous. Steve Kohler, who moved to North Carolina last spring, has been hired on to help us on this project. He lives only 90 minutes from the job site and has been available to pull permits, apply for licenses and handle other administrative duties. This project should take approximately 6 months to complete.

4.  A Ride to Remember

This past spring’s Harley ride was enjoyed by all. We decided to take a different route this year, which we thought we’d share with you. 

We started the ride with breakfast and a little friendly conversation at Sal’s restaurant in Withrow. All 30 of us packed up and traveled southeast to Afton, then on to Prescott where we stopped for a brief rest. We then headed to Fountain City and had lunch at Hanson’s Hold-Up.

The western theme of building and décor made us feel as if we were in a saloon in the 1800’s. It was decorated in nostalgic memorabilia from the wild west era, including autographed pictures of John Wayne. The owners added to the drama by playing tricks on customers,

making this establishment one that we would surely revisit and recommend to others. After lunch, we headed southeast to Maiden Rock. From there we rode to LaCrosse, our final destination for the day. The ride was spectacular. The sun was shining brightly and the scenery was breathtaking. When we reached Lacrosse, we checked into our hotel, had dinner, and just relaxed with our group.

The next morning, we headed south (on the Wisconsin side) to Prairie du Chien, Wisconsin.  Again, the day was perfect. We stopped at a German restaurant along the way, where a local informed us of a different, more scenic route to take to the casino. We were glad we took his advice. The winding roads took us through a beautiful countryside. The mayflies were a bit bothersome along the river, but we got over it as soon as we reached the Prairie du Chien river boat casino. We ate dinner at the buffet and gambled into the early evening. If you’re wondering… no one hit it big. Instead of backtracking to the hotel, we decided to ride back to La Crosse on the Minnesota side of the river. The quiet ride back was an indication of the long and eventful day we had.

That evening some of us chose to hang out back at the hotel, while others rented a limo that brought them into town. Those young ones never get tired!  Sunday morning sure came fast. We were on our own for the trip home. Some left in the morning, while others took their time, hoping to hold on a little longer to the enjoyable weekend.

The line up of bikes.

5.  Employee of the Month

Each month the superintendents nominate an employee who they feel deserves the title of "Employee of the Month" for the previous month. The person who is chosen receives a gift certificate for $100.00 and picture on a plaque in the office. Congratulations to the Employees of the Month:

• May 2007—Mike Ahlberg
• June 2007—Theresa Fischer
• July 2007—Shelly Boss

6. Holiday Schedule

Listed below are the days that Frattalone Companies will be closed this year:

• 09/03 -- Labor Day
• 11/22 -- Thanksgiving Day
• 12/25 -- Christmas Day
• 01/01 -- New Years Day

7. Golf Tournaments

CLC tournament

The 9th Annual Central Lakes College Golf Tournament was held on Tuesday, July 24th. This year we raised $22,000.00 for the Heavy Equipment Program at Central Lakes College.  Thank you to all who helped make the tournament a success.

Frattalone Golf Classic

Call Shelly in the office if you are interested.

Not a Golfer? No Worries! Feel free to join us in the club house after the tournament for the Vikings game. 

8. Congratulations!!

Isabella Nicole Herkenhoff, daughter of Joe and Nicole, was born on June 20, 2007. She weighed 7lbs. 14oz. and was 19.5" long.

Peyton Joe Peroutka, son of Joe & Lindsey, was born on June 27, 2007. He weighed 7lb. 12oz. and was 20" long.

Eric Piechowski and Tina Schwabwere married on Saturday, August 25th.

Shane Stevenswas recognized by the Minnesota Trucking Association Safety Council for his model behavior while behind the wheel of our trucks. Way to go, Shane!

9. Company Meeting

Following are the dates for the all company safety and informational meetings for 2007. These meetings are a very important part of keeping you informed of company policies and procedures. 

• Thursday, 10/11/07 at 4:00pm

Remember...this meeting is mandatory.

10. Tickets and Timecards  

As some of you may know, we have recently changed our payroll system. Because of this, we need to enforce our Company policy stating: daily tickets need to be turned into the office the next workday and weekly time cards will only be accepted until 9:00 a.m. on Tuesday morning.  Any paper work turned in late will be paid the following pay period.

11. Thank You..

Frador, Inc. would like to extend a special "thank you" to Lori Bemis for all of her hard work and time spent on the float for the Canadian Days parade, which was held on the first Sunday in August. Her extra efforts were greatly appreciated!