Road Construction Company Finds Help
To Become More Profitable, Efficient

INDUSTRY OVERVIEW

The nationwide picture of road construction depending upon the number and size of local, state and federal projects - with their accompanying funding - that are occurring. In addition, the weather can be a major factor in this construction business for two reasons. One, bad weather can delay construction projects. Second, consistent weather problems can cause government funding to be reallocated from road building to other efforts that deal with the weather-related problems.

COMPANY OVERVIEW

Mariner Construction is facing some delays of major projects due to heavy rains that have been occurring in the northern Great Plains states. The company is experiencing first hand how funding is being shifted from road construction to dam and floodwater projects. However, while there is this shift at the state and federal funding levels, Mariner Construction is focusing more efforts at local and private work, such as city streets and parking lots.

COMPANY ISSUES/CONCERNS

Mariner Construction asked the George S. May International Company for assistance in becoming more profitable. Owner and president Art Mariner and his people began to feel the business was running them, rather than them running the business. He also wanted to put the business into a stronger position for his sons to eventually take over.

SOLUTIONS

The consultants for George S. May International Company put in place a financial plan that included a variety of helpful reports, such as breakeven and variance reports, to give the president and his managers accurate and timely information. The procedures for estimating and job costing were also reviewed and suggestions are now improving those activities. Wasted and excess shop time was an issue identified and corrective action taken.

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