Quarry quandary page 3 Control your fleet page 6 Cutting for chipboard page 8 300,000 passes page 10 First start on Portland page 12 SECOND ISSUE 2009

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1 A HITACHI CONSTRUCTION AND MINING PRODUCTS PUBLICATION SECOND ISSUE 2009 Quarry quandary page 3 Control your fleet page 6 Cutting for chipboard page 8 300,000 passes page 10 First start on Portland page 12

2 ON the INSIDE ZXLink : From-your-seat fleet control It s time to seize the reins of power and exact maximum control over your fleet. ZXLink, the exclusive line of machine monitoring systems, gives you the power. By combining field-installed hardware and ZXLink network services, ZXLink now offers two wholefleet telematic solutions that let you track location, functions, hours, fuel consumption, alerts, and other essential machine data. You ll keep an eye on your fleet without leaving your seat. Since Hitachi introduced ZXLink a few years ago, this line of telematic monitoring systems has enjoyed the benefit of extensive customer feedback so you get the features contractors value most. And, with three levels to choose from, there s a solution for every contractor s budget. n Express is an economically priced all-makes system that gives you daily reports on hours, machine location, geofencing, curfew, and maintenance tracking. It works on any unit with a 12- or 24-volt battery. n Select provides 24/7/365 tracking of machine-hour, location, curfew, geofencing, and maintenance alerts. It is a whole-fleet solution with expandable sensor capability. For example, sensors can be added to track fuel consumption, work vs. idle, and other machine-utilization features. n Ultimate is a top-shelf system that delivers all of the above plus dashboard alerts, diagnostic trouble codes, and equipment-utilization and fuel-consumption data. Ultimate is available only on Hitachi ZX Dash-3 Excavators. Right now, many new Hitachi models are shipped from the factory equipped with ZXLink Ultimate and three years of free service. And that s just the beginning of the savings you ll realize. Call your dealer for full details. Luke Gakstatter, Director, Hitachi Construction Products Quarry quandary EX1200 keeps quarry development on schedule Fifty-ton haul trucks scurry about the new quarry being established by Grace Pacific Corporation on the Hawaiian island of Oahu. Like ants from a pile of honey they scurry from the Hitachi EX1200, one every minute and 20 seconds, their beds heaped high. Bob Singlehurst, project manager of this huge venture, looks down on the activity from his lofty vantage point with a knowing smile. We have six million cubic yards of material to move to get this site ready, says Singlehurst. The production we re getting from the EX1200 is keeping us on schedule. The EX1200 s 6.9-cubic-yard bucket fills quickly as 115,081 pounds of digging force rips through the volcanic material, cycle after cycle. So what s the hurry? Time is money. The owners want the prep work done before the necessary operating permits arrive. Overburden must be removed, haul roads cut into the walls of the quarry, and berms built to shield the 35-acre project from view. Once in operation, more than a million cubic yards of rock a year will be mined for the next twenty-five years. It s a big job, one of the largest this 69-year-old-veteran of the quarry business has had in his storied career. The company has an enormous investment here. We need to be ready to produce as soon as those permits arrive. 3

3 Singlehurst has never had a non- American-made machine in one of his quarries until now. We ve always had Cat. Since they don t build a machine this size, we tried the Hitachi and have liked it from the beginning. Now that it s been on the job a while, I would honestly say the EX1200 has exceeded our expectations in every way. Dealer s duty Singlehurst talks, too, of the importance a dealer plays in the selection of equipment. A good dealer is particularly important when you re dealing with a high-production machine like the EX1200. If it goes down, the job and all of the men and equipment working with it go down, too. He notes that costs soar far higher than the repair bill itself. Dealers need to have competent technicians and well-stocked parts departments. We ve had virtually no downtime with the EX1200, but when there s an issue, the repair truck is here in an hour or less. And there has been nothing that has stumped the technician. He s been able to get us going fast. Singlehurst does allude to one instance when the machine was down for a day. Seems a Bob Singlehurst, Project Manager tooth ripped off the bucket, and to get it welded correctly just took time. The importance of a competent dealer, particularly when working in a remote location like Hawaii, can cause difficulties when parts are needed fast. Singlehurst says that this hasn t been a problem. American Machinery has had any part we ve needed in stock. He also points out that with today s airfreight, parts can arrive in a couple of days. Creature comforts Operator comfort, particularly in a high-production machine like the EX1200, can help an operator work at peak efficiency for long shifts, and this machine stands tall on this measure, too. Large tinted-glass panels provide a clear view, 360 degrees around. A fully adjustable suspension seat molds to the operator s body for total comfort, and the cab is heated, air conditioned, and fully pressurized to keep dust out. I d have to fight to get that machine away from our operator, and I m not sure I would win. He points to another area where a happy operator pays big dividends the way the machine is operated and taken care of. He notes that pride can go a long way in increasing production and reducing abuse of the machine. Back on the job The seemingly unending stream of haul trucks continues to snake through the winding quarry roads as the 760 horsepower EX1200 swings smoothly, rock to truck, rock to truck, rock to truck. There s quiet confidence that this huge project will be ready on time and on budget. We couldn t do it without the EX1200, says Singlehurst. JDM Grace Pacific is serviced by American Machinery, Oahu, Hawaii. I would honestly say the EX1200 has exceeded our expectations in every way. Bob Singlehurst, Project Manager ABOUT GRACE PACIFIC CORPORATION: This 75-year-old company has constructed and maintained the roads and highways that are an integral part of Hawaii s infrastructure. Besides being the state s premier concrete, asphalt, and aggregate supplier, its 500 employees provide prestressed and precast concrete products, metal framing systems for construction, and traffic and highway safety products. The EX1200 loads a truck every 80 seconds. 4 5

4 Control your fleet without leaving your seat New and improved ZXLink machine monitoring system delivers a whole-fleet telematic solution for every budget The ZXLink machine monitoring system has had the benefit of feedback from people who matter most people like you. Hitachi has taken customer recommendations to heart and re-engineered ZXLink to provide features contractors need. Read on about what today s ZXLink can do for your operation. Global Positioning System (GPS) has become so popular in our industry that many contractors insist a telematic system be installed on every machine. They want to know the location of every machine, they want real-time data on productivity and fuel consumption and, above all, they want to stay current on machine-maintenance data hour-meter readings as well as alerts on potential downtime events. There are many more reasons why this reliable, factory-installed machine-and-data solution is a great investment. And through continuous improvements, Hitachi has refined ZXLink features so you pay only for the bells and whistles you need. Through ZXLink, you ll see gains through smarter machine utilization. Through desktop fleet management, you ll know when to relocate a machine and will have a better feel for when your fleet could use new, used, or rented equipment. With a whole-fleet telematic solution, concrete, actionable data on how long machines idle think of the potential fuel savings. You ll also draft more accurate estimates and keep losses to a minimum. It all adds up to lower operating costs and increased efficiency through squeezing more value from your fleet. And speaking of great values ZX200LC and larger Dash-3 Excavators come from the factory with ZXLink Ultimate. And with three years of free service, the machine-monitoring news just keeps getting better. For smart fleet-management solutions, call your local dealer today and get ready to control your fleet without leaving your seat. GPS satellite locates machine Your machine sends data to Network Management Center via cell-phone tower Network Management Center translates data and loads it on the website n ALERTS Ultimate Utilization sends machine alerts in time to do something about downtime. The alerts include red-stop and yellowcaution diagnostic trouble codes and operator-misuse alerts. n MACHINE FUEL UTILIZATION Get insightful, comprehensive reports on fuel utilization that can really make a difference. For example, know how many gallons are used at idle, low, medium and high machine loads. Want to know average fuel consumption rates for a machine function? You got it. Understanding true machine costs for any job is a powerful way to improve your profitability. n MACHINE UTILIZATION Machine utilization is all about knowing how long a machine runs in a given mode and this screen makes it crystal clear. Suspect you re not getting your money s worth out of your ZX450LC-3 Excavator in its current application? This screen removes all the mystery. n FUEL CONSUMED ZXLink can provide fuel-consumption data in many different ways: total over a period of time, operating in certain functions, averaged over a period of time, and several other formats. Network Management Center sends alerts to your PC or cell phone You ve got actionable information at your fingertips Boost productivity while reducing downtime and daily operating costs ZXLink offers three distinct systems to ensure there s one that s right for every operation. You can expect a boost in productivity via utilization information with engine-load and fuel-consumption data, machine alerts, and machine workversus-idle information. These systems deliver uptime through maintenance tracking you ll be alerted to all scheduled maintenance. You ll not only extend machine life, but you ll also boost the equipment value when you re ready to trade. 3 3levels of excellence 4 Express This new economically priced all-makes system gives you daily reports on hours, machine location, geofencing, curfew, and maintenance tracking. Express works on any unit with a 12- or 24-volt battery. 4 Select This system features 24/7/365 machine-hour, location, curfew, geofencing, and maintenance tracking. ZXLink Select is a whole-fleet solution with expandable sensor capability. For example, sensors can be added to track fuel consumption, work vs. idle, and other machine-utilization features. 4 Ultimate Ultimate is a top-shelf system that delivers all of the above plus dashboard alerts, diagnostic trouble codes, and equipment-utilization and fuel-consumption data. Ultimate is available only on Hitachi ZX Dash-3 Excavators. 6 7

5 I Moving from right-of-ways to cutting for chipboard moved from Northwestern Ontario to Grande Prairie with my wife, three kids, and a U-Haul full of our stuff in 91, recalls Randy Mattson, president of First Pass Oilfield Contracting Ltd. in Grande Prairie, Alberta. The oil patch was getting strong again, with a number of gas wells coming in, and there was a real need for distribution lines. I was ready to go after the business of clearing right-of-ways. And there s enough forest around here that if a line went very far, it would go through substantial forestland, which is my specialty. First Pass uses a variety of roadbuilding and forestry equipment for making the first pass on the right of ways, bulldozing roads and stream crossings, felling/bunching trees, skidding, delimbing, and mulching. Shifting gears Last summer, it appeared oil and gas activity was slowing, says Mattson. I had the opportunity to bid on cutting for the Ainsworth chipboard mill here in Grande Prairie. There was new ownership, and they were interested in obtaining new contracts for the cutting of their deciduous-tree blocks. The contract Mattson won is to harvest a string of deciduous-tree blocks that are within or adjacent to conifertree blocks leased to Canadian Forest Products. First Pass builds the roads into the blocks, cuts the aspens, and hauls them to the road. After delimbing, the logs are cut to 16-foot lengths as required by the mill. The minimum diameter for harvesting is six inches at the butt, with a maximum diameter of 32 inches. Another company handles the loading and transport. Selected with a dangling head I decided the best equipment package for this contract was a new, single unit that could delimb, cut to length, and stack the logs by the road. Since it would be the most visible piece of equipment on the job, I wanted to make sure it was always operating whenever a mill rep might drop by, explains Mattson. I decided to trade in my old delimber and start fresh. A new machine would be more fuel efficient and have lower maintenance costs and better uptime. My older feller buncher and dozer would play supporting roles in the operation. I figured if the logging contract didn t work out, I d still have a more flexible machine for oil-field contracts. Matson had never owned a Hitachi before. But after he paid a visit to Wajax, Canada s Hitachi dealer, he was quite impressed. I learned the Forester was made in British Columbia. And I got really excited when I learned Isuzu had one of the highest fuel-efficiency engines. So, I locked in a contract with the mill, partly based on my order with Randy Mattson, President Wajax for a fall delivery of a brand new ZX210F-3 Forester. In the meantime, Wajax provided me with a used Forester until the new one could be built and delivered. Ever since my new Forester arrived, I ve been impressed. The fuel economy is just as advertised. The light package works great. And the overall production I get out of the little four-cylinder Isuzu engine and the Waratah dangling head is excellent. I chose a processor head a little smaller than some might expect, but it has handled the larger wood just fine. The package is clearly more cost-effective than larger, more expensive machines. My Hitachi is also low maintenance. I like the optional reversing radiator fan, the larger fuel tank, and the durability designs. Especially since I m working two shifts, 12 hours each one five days a week, the other six days a week. The Mill is quite pleased with what I m doing and continues to add more blocks, says Mattson. The oil-field service work is good, but it s cyclical. Of course, the logging industry is cyclical, too. But, hopefully by working both industries, oil field and logging, I ll keep the crew busy. First Pass Oilfield Contracting Ltd. is serviced by Wajax Industries, Grande Prairie, Alberta. The Hitachi ZX210F-3 Forester with its Isuzu engine is very fuel efficient. 8 9

6 ONLINE VIDEO ONLINE VIDEO ONLINE VIDEO 300,000 passes The Hitachi is just a wonderful machine altogether. I know some people bleed yellow, but I d have to say we bleed orange. Robert Weinrich, WCL Co-Owner W e re excited to be a part of the newest section of Edmonton s Anthony Henday Drive, exudes Robert Weinrich, co-owner of Weinrich Contracting Ltd. Anthony Henday Drive North, as it s called, is a 13-mile (21-km) portion of ring road encircling Edmonton, Alberta. It s being built within the Transportation and Utilities Corridor, which consists of land bought by the Alberta Province during the 1970s and 80s. The new section includes 29 bridge structures, which are required for nine interchanges, four flyovers, and two crossings over railways. We are working for Flatiron- Graham-Parsons, A Joint Venture, one of North America s leading providers of transportation construction and civil and we re done engineering in North America, says Robert. We won the project of moving about 800,000 cubic meters based on our using three Hitachi ZX350 Excavators with 2.6-cubic-meter buckets and twenty three 8.5-cubicmeter-capacity dump trucks. Excavating Edmonton Even though Edmonton has been a true oil-and-gas boomtown over the past number of years, it hasn t always been a gusher for the Weinrich brothers. When we started in 1996, I really hadn t been in the excavating business, but I was fairly sure it could be profitable. So, I bought an old excavator and gave it a try, says Robert. It was a hard go at first, and even the heavy equipment dealers were skeptical about my prospects. Like any new start-up, we were ready to go to wherever the work might be, Edmonton or wherever. Co-owners Robert and his brother Scott got it right, though. The quality of their work, a competitive pricing structure, and knowing the right people sustained them in the early days. We ve made a good impression with some of the best contractors in Edmonton. We do the very best possible job at a good price, and we re dependable because we use the best equipment. Strategic Planning We also set our sights on doing particular types of work, and we re constantly looking for openings to showcase our worth, notes Scott. For instance, we re doing a project downtown in the tightest, most congested area possible. It s unique, and we re going to make it a great success for us and the contractor. We pursued the job, convinced everyone we could do it, and then bid aggressively to get it. There was nothing casual about our approach. The same can be said for the Anthony Henday project. We ve been thinking about and working on the project since it was first announced. We decided we wanted it, and now my brother Robert will be on-site nearly every day to make sure it s done right and on time. We Bleed Orange Just after we started our business, I got to know someone at Wajax the local Hitachi dealer who promised to help us. And he did. Our first machine had some parts in common with a UH504 or something like that, quips Robert. So, we counted on him to help us buy our first machine in 2003 an EX200. He helped put a short stick on and a bucket more typically used for the EX300. Well, today we still have that Hitachi and have a great relationship with the Sales Manager for Wajax s Edmonton operation. We keep our maintenance up, but repair costs on Hitachi excavators have always been exceptionally low, says Scott. And they always start in winter. You let those glow plugs go a bit, and they start right up. On the operation side of it, the employees really enjoy running them because they are smooth, quick, and powerful. The units are good on fuel, so I like that. And they re nice and quiet in the cab. The heated seats make you feel like you re in a Cadillac compared to other stuff on the market. In 2004, we bought our second machine a ZX230. And again, we ve probably only got about $2,500 in repair costs, notes Robert. Everything still works: every knob, every switch and light. In 06 we bought Scott Weinrich, WCL Co-Owner; Amanda MacLeod, WCL Job Foreman; Edith Weinrich, WCL Treasurer; Robert Weinrich, WCL Co-Owner. two ZX200s. Then in 07 and 08 we got more 200s, and then a series of ZX350s. The Hitachi is just a wonderful machine altogether. I know some people bleed yellow, but I d have to say we bleed orange. I wouldn t buy another excavator brand. The combination of Wajax and Hitachi has just been perfect for us. Weinrich Contracting Ltd. is serviced by Wajax Industries, Edmonton, Alberta

7 C&M Construction First start on Portland developments We like the Hitachi trackhoes because they are reliable. Gerald Sproul, Vice President. W e ve built the roads, installed the utilities, and built the pads for many of the new developments in the Portland area over the last 24 years, says Conrad Sproul, president of C&M Construction, Inc. And it s a great pleasure to drive through the city and remember with pride how we tackled a problem over there, made a difficult obstacle vanish over there, or how we worked with a developer to make a subdivision s road more dramatic and inviting. But private development work in the Portland area is slow right now, just as it is in much of the United States. So, C&M is now concentrating on publicworks jobs. Right now, we re doing a project for Washington County, says Gerald Sproul, one of two sons in the business. It s a road-widening project as well as storm drainage. It has a little bit of everything we do. The project is about 4,500 linear feet of either road widening or full utility work. Typically, in a slow construction period like this, there are so many bidders that the profit s slim, but it keeps us in the game. A paid-for fleet We started as a one-man band in 1975 with a little TD-7 Dozer, a dump truck, and a rubber-tired backhoe, says Conrad. We grew until about 1980 and then, well, we proudly survived the downturn of the early 80s. During those years, guys were crawling on their knees to get on a bid list. It was unreal. When you go into this business, for the first 10 years you work for the bankers, the insurance people, and the equipment people, and hope like hell that you make enough money to see you through the winter. Fortunately, we re past that stage. But that anxiety never leaves you. With that philosophy in mind, they purchase equipment to meet the needs of a specific job. Then, they tend to go after similar kinds of jobs so that equipment can be used over and over again, paying for itself in a fairly short amount of time. As a result, they now have over 100 pieces of iron, 26 of which are trackhoes. In order to maximize their investment, they bring each machine into their shop to fix everything they can identify, putting it in top shape to minimize any future downtime. Having well-maintained, paid-for equipment helps them not only get the low bid in slow times, but means they are more likely to make a profit as well. We like Hitachi We like the Hitachi trackhoes because they are reliable, explains Gerald. There are absolutely no repair problems. We buy all of our excavators new and then take care of them. As a result, we ve got Hitachi excavators with 12 15,000 hours on them, and they re still functioning. Our strategy is to buy the best excavators on the market and then keep them in top shape. We have very little downtime Conrad Sproul, President; Bill Sproul and Gerald Sproul, Vice Presidents. or unexpected repairs with our Hitachis. Another reason, perhaps not quite as important, is that their orange paint matches our company colors! he says, smiling. We ve put automatic greasers on all of the trackhoes we ve bought in the last four years, adds Conrad. They have not only prolonged pin life, they use less grease, we get better service out of the machine, and we eliminate the labor of a field-service guy taking care of the machine. So, even though they cost five or six thousand to buy, for our long-range plan, they re worth it. Here for the long haul As a result of buying-the-bestand-planning-on-keeping-each-piece approach, we re ready to go to work whenever an opportunity comes along, concludes Conrad. We also have a good fleet of dirt scrapers, compactors, and loaders serviced and ready to work when private work starts up again. And we re confident it will. C&M Construction, Inc. is serviced by Papé Machinery, Portland, Oregon. Our strategy is to buy the best excavators on the market and then keep them in top shape. Gerald Sproul, Vice President 12 13

8 Everyday financial solutions Why settle for a typical lender when you can have a customized financial solution?* When you need new or used Hitachi equipment, you have options. You could pay cash, you could see your bank for a loan, or you could go with John Deere Credit and take advantage of finance solutions* from a lender that s interested in your success. Thanks to years of experience in equipment financing for U.S. and Canadian customers, John Deere Credit understands the unique needs of your construction company particularly when it comes to cash flow. That s why John Deere Credit offers you financing alternatives with competitive rates, flexible structures, and solutions customized to your everyday challenges. Leasing Installment Loans Some construction companies prefer to own their equipment, for a number of reasons. Purchasing equipment enables you to deduct interest and depreciation, thereby reducing your tax bill.** You can also build equity in your equipment for later resale. The downside, of course, is that down payments can sometimes put a strain on your resources. That s why John Deere Credit offers the following alternatives to large down payments: Why own equipment longer than you need it? A lease from John Deere Credit can help you keep your fleet up-to-date and is often the lowest-cost alternative. Leasing lets you use the equipment for a fixed amount of time in order to accommodate a specific contract or projects this lets you meet your operational objectives with a competitive source of financing. Other benefits of leasing include the following: Lower upfront costs than traditional installment contracts. Generally lower monthly payments compared to installment contracts. Tax benefits of expensing payments vs. interest and depreciation.** Helps with planned equipment replacement, keeping you in new machines, reducing downtime and repair costs. Flexibility at the end of the lease term extend the lease, or return or purchase the equipment. Accelerated payments Start with a smaller down payment, then make larger payments for the first few months to build equity quickly. Additional collateral By pledging a machine free of liens as additional collateral, you provide increased security with no out-of-pocket costs. John Deere Credit also knows how your income and expenses can change over time. Skip payments can help you manage these changing conditions. If you typically experience fluctuations in your workflow due to seasonal climates/industries, just schedule skip payments into your John Deere Credit installment loan. You can skip monthly payments for up to three months a year, and the equity you build during your busy season will carry you through the off-season. John Deere Credit has a knowledgeable, professional team of experts that work directly with Hitachi dealers to develop the financial solutions to meet your needs. For more information specific to your equipment-financing plans, visit with your local Hitachi dealer and ask about how John Deere Credit can help you. *Subject to approved credit on John Deere Credit Installment Plan. **Consult your tax professional. Not too big and not too small, the ZX135US-3 delivers all the power, smoothness, precision, and ease of operation you expect from Hitachi in an easy-to-maneuver package. The ultrashort tail-swing design gets right up next to curbs, walls, buildings, and obstacles. And like other Dash-3 models, it delivers increased swing torque, greater drawbar pull, added stability, precise performance, and the power and fuel efficiency of an Isuzu Tier-3 engine. Come by one of our dealership locations and check it out. The ZX135US-3 is perfect for underground utility applications and a whole lot more. ALWAYS PRECISE 14

9 PRSRT STD AUTO U.S. POSTAGE PAID STEVENS POINT, WI PERMIT NO. 272 DKD1034 Litho in U.S.A. (09-04) Hitachi Construction and Mining Products th Avenue Moline, IL

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