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  • Eastern European contractors visit local company

    Las Vegas Business Press, NV
    Monday, March 21, 2005

    Eastern European contractors visit local company

    The SABIT delegation takes a break from its meeting at American Asphalt and
    Grading Company.
    BY IAN MYLCHREEST

    BUSINESS PRESS

    Executives at American Asphalt and Grading Company (AAG) found
    themselves last week leading a seminar for a group of road construction
    executives from the former Soviet Union. The group from Armenia,
    Georgia, Belarus and Ukraine were participating in the U.S. Department
    of Commerce's Special American Business Internship Training (SABIT)
    program.

    The Russian-speaking executives were in town for the CONEXPO trade
    show but took a morning to visit the offices of AAG where they were
    given some insights into the road construction business in Clark
    County. The SABIT tour was part of a month of discussions with
    construction executives and public officials across the country.

    AAG's program for the visiting Europeans included meetings with
    senior executives of all divisions including construction and
    equipment. Jim Atkins, AAG's vice president of the public works and
    commercial divisions, led the discussions describing typical patterns
    of road construction and funding from the various government bodies
    for different types of roads. He also described for the Europeans
    unfamiliar with Nevada's native soils, the kind of chemical and other
    treatment to lay a road bed as well as the road bed of crushed rock
    compacted to about 90 to 95 percent density. The participants grasped
    that, although they were unfamiliar with the configuraton in Atkins'
    whiteboard illustration.

    Also on the agenda were the various flood control mechanisms that
    are part of the construction process. Those two were a surprise for
    engineers more familiar with soils that absorb rainfall.

    Perhaps most perplexing for the visitors was the funding mechanisms
    for different kinds of roads. Gasoline taxes paid for construction,
    explained Atkins, but some of the SABIT guests seemed perplexed
    by distinction between the national highway system of the federal
    government and state and county programs to build main roads.






    Even more difficult was the concept of suburban roads that are built
    by developers to city or county specifications, but then turned over
    or "dedicated" to the local authorities after they are built. Atkins
    explained that developers typically grade and prepare a site and
    install infrastructure, including roads, as part of the development
    costs.

    After some questions and more discussion and the occasionally quizzical
    look as the translators struggled to keep up with the lively back
    and forth, the concept was grasped. Eventually, one attendee asked
    if the roads were utlimately paid for by the buyers of houses and
    other buildings in new developments.

    "Absolutely," Atkins replied to the translator who relayed the message
    to the visitors. "Now you understand capitalism!"

    The group seemed gratified as Atkins explained to them that AAG had
    about 50 percent marketshare of grading in the valley and 30 percent
    marketshare for paving asphalt.

    SABIT is a joint initiative of the U.S. Department of Commerce and
    the private sector to promote market access through strong commercial
    partnerships. Its training programs, according to the DOC Web site,
    directly support Eurasian economic and civil society development by
    encouraging market-based reforms, while generating valuable export
    and investment opportunities for U.S. industry.

    "Expanding commercial trade ties is critical to the economic well-being
    of the United States as well as to the continued growth of the
    countries of Eurasia," says Tracy Rollins, director of SABIT. "The more
    we expand trade, the more we foster democratic values and stability
    abroad, all of which are vital to our security."

    AAG was found, says Erin Schumacher, an international trade specialist
    and program recruiter at the DOC, through Internet research. "We
    have to fill the time with company and site visits," she adds. Atkins
    says he was called by the DOC and was happy to oblige in showing the
    Europeans an American contractor at work.

    Atkins says his company has no ambitions. "No, we really don't see
    it opening up business opportunities for us. We've got all the work
    we can do here."

    The delegation operated with two translators, who took turns in
    explaining the Americans words in Russian. Schumacher says any Eastern
    European over 30 is fluent in Russian because they were forced to learn
    it under the Soviet regime. "We had to choose one language," she says,
    "and they all knew that." The delegates wore wireless transmitters
    and earphones to better understand their translators.

    The SABIT delegation also visited Washington, DC, Boston and
    Phoenix. They also undertook private visits to construction sites to
    see American contracting in action.

    Since 1990, over 1,000 organizations have hosted over 3,300 trainees
    through SABIT, which has been credited with facilitating $300 million
    in export revenues.

    [email protected] | 702-871-6780 x319
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