Paving Chicagoland w/ Ryan Gandy of Builders Asphalt – DT 320 - Dirt Talk by BuildWitt

Transcript

Aaron (0:00)

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Brad (1:10)

Yeah, we've enjoyed this summit. I mean, it's. It's been awesome. Yeah, we've been to both.

Aaron (1:15)

Yeah. You've brought a lot of people, probably more than just many of you.

Brad (1:18)

Your first one, and then, you know, the second one last year was phenomenal. Got a. Of good feedback.

Aaron (1:22)

Yeah.

Brad (1:22)

Like. And two, meeting. I mean, meeting the different. You know, everybody there is in our same. Kind of, Our same league. Right. We're all in the same space. And it's. It's nice to be able to have that conversation, you know, with other contractors, you know, or companies that are in that. In that industry and discuss, you know, things that you can't have, you know, that discussion with. At the dinner table, because not many people understand.

Aaron (1:43)

Sure.

Brad (1:44)

You know, what. What it's like to be in that industry. So.

Aaron (1:46)

Yeah. And it's. So this market's so interesting because it's so fragmented. So it's like you're a big player in the Chicagoland area, but then you go to the next city over, there's big players there, too. Then you go to the next city over, there's big players, and they do the same thing. And it's like, I think contractors have talked about this. Like, they think they're a little more special than they are. And it's like, I know you've got a unique culture, you've got a unique formula, history, whatever it is, a road's a road. Asphalt's asphalt. Like, it's. It's. You're using the exact same equipment. You're paving to the state specs or what, you know, whatever it is that everybody else. Yeah, yeah. It's. And. And so it's. It's really not that different across. And everybody has the same problems, like, oh, they're, you know, people are tearing up our equipment, or we're struggling to recruit, or how do we market ourselves better or, you know, how do we bid more efficiently? Exactly. It's all the same stuff or suppliers, you know, man, they're. They're really squeez us right now.

Summary

Dirt Talk Podcast Episode Summary: "Paving Chicagoland w/ Ryan Gandy of Builders Asphalt – DT 320"

Release Date: March 13, 2025

Introduction

In this episode of Dirt Talk by BuildWitt, host Aaron engages in an in-depth conversation with Ryan Gandy of Builders Asphalt. They explore the intricacies of the paving industry in the Chicagoland area, discussing market dynamics, material choices, operational challenges, labor issues, and strategies for growth.

1. Fragmented Paving Market in Chicagoland

Ryan Gandy highlights the highly fragmented nature of the paving market within Chicagoland. Despite being a significant player locally, numerous big players exist in neighboring cities, each managing similar operations and facing comparable challenges.

Ryan Gandy (02:46): "It's all the same stuff—suppliers are really squeezing us right now."

2. Regional Differences in Paving Operations

The conversation delves into how paving practices vary across regions. For instance, Ryan contrasts the asphalt-heavy roads of Arizona with the concrete foundations prevalent in the Midwest, emphasizing how climate and local regulations shape these choices.

Ryan Gandy (05:19): "On the autobahn, no speed limit, so it has to be perfect... it's a risk to public safety."

3. Material Choices: Asphalt vs. Concrete

Aaron and Ryan discuss the pros and cons of asphalt and concrete. While asphalt offers flexibility and easier maintenance, concrete provides rigidity but can be costlier and less adaptable to severe weather conditions.

Ryan Gandy (08:55): "They're trying to minimize themselves [in Illinois]."

4. Operational Challenges and Equipment Management

Operational efficiency is a recurring theme. Ryan emphasizes the importance of maintaining continuous paver operation to ensure high-quality road surfaces. Delays caused by traffic or closures can lead to compromised quality and increased costs.

Ryan Gandy (47:44): "Your paver should never stop."

5. Labor and Union Dynamics

The strength of unions in Chicago significantly impacts the paving industry. Ryan discusses the challenges of recruiting and retaining skilled workers amid strong union presence and the generational shift as experienced operators retire.

Ryan Gandy (40:19): "The teamsters are all the truck drivers."

6. Growth and Expansion Strategies

Given zoning restrictions and market saturation, Ryan outlines Builders Asphalt's growth strategy primarily through acquisitions. This approach allows the company to expand its footprint without encroaching on existing players’ territories.

Ryan Gandy (68:10): "It's near impossible to get zoning and put up an asphalt plant."

7. Quality Control and Mix Design Complexity

Maintaining quality is paramount. The duo discusses the meticulous process of mix design, ensuring the right balance of aggregates and liquid asphalt to meet stringent specifications. Ryan underscores the investment in lab facilities and quality assurance as critical to their success.

Ryan Gandy (34:07): "We're checking the big D, right? Big D gives us our density, our voids."

8. Sustainability and Recycling Asphalt

Recycling asphalt, or WRAP (Asphalt Binder Replacement), is explored as a sustainable practice. While beneficial for reducing costs and environmental impact, Ryan cautions against overuse to protect plant equipment and maintain mix quality.

Ryan Gandy (76:50): "I don't like to max out because it's hard on your plants."

9. Hiring and Training the Next Generation

Addressing the labor shortage, Ryan emphasizes the importance of hiring younger workers and investing in their training. Builders Asphalt is developing internship programs to cultivate talent and ensure long-term sustainability in the workforce.

Ryan Gandy (90:29): "We're developing an internship program to attract and retain young talent."

10. Public Awareness and Industry Education

Both Aaron and Ryan advocate for greater public understanding of the paving industry. Ryan believes that educating the community and potential clients about paving operations can foster better relationships and appreciation for the work done.

Ryan Gandy (87:43): "If the public was more educated on what they do and how they perform, they would embrace them."

Conclusion

This episode of Dirt Talk provides valuable insights into the Chicagoland paving industry through Ryan Gandy's experiences and perspectives. From navigating a fragmented market and managing operational complexities to addressing labor shortages and embracing sustainable practices, Builders Asphalt exemplifies resilience and adaptability in a challenging environment.

Notable Quotes:

Ryan Gandy (02:46): "Suppliers are really squeezing us right now."
Ryan Gandy (05:19): "On the autobahn, no speed limit, so it has to be perfect."
Ryan Gandy (47:44): "Your paver should never stop."
Ryan Gandy (34:07): "We're checking the big D, right? Big D gives us our density, our voids."
Ryan Gandy (76:50): "I don't like to max out because it's hard on your plants."
Ryan Gandy (90:29): "We're developing an internship program to attract and retain young talent."
Ryan Gandy (87:43): "If the public was more educated on what they do and how they perform, they would embrace them."

This comprehensive summary encapsulates the key discussions and insights shared by Aaron and Ryan Gandy, offering listeners and non-listeners alike a clear understanding of the challenges and strategies within the paving industry in Chicagoland.