Vertical expansion
August 1, 2006 By: Rodney E. Garrett Pit & QuarryThere are companies in the quarry business that are active in vertical integration by quarrying and processing rock, producing ready-mix concrete or hot mix-asphalt. Some might go as far as carrying out the paving of these products. One company that has taken this practice to uncommon heights is the H&K Group of Skippack, Pa. The company is a producer of crushed stone, manufactured sand and screened gravel products throughout the eastern half of Pennsylvania. It owns and operates 27 quarries.
While quarrying is a major business for H&K, it is only one of many businesses where the company has made a name for itself. The H&K Group is a group of vertically integrated companies with 62 operations. The company is committed to the construction industry by being active in the construction-services business, quarrying and processing rock, the manufacturing of construction materials, demolition services, construction-related environmental services, land clearing, topsoil and mulch production, and as a major producer of quarried and cut architectural stone. The H&K Group's businesses collectively employ 2,400 people.
As to growing a company, there are major corporations in North America who are rapidly expanding market share through acquisitions of established, on-going quarry businesses. H&K, however, prefers to grow in the Mid-Atlantic states by having a broader presence in the construction industry.
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Acquisition
H&K has been growing its topsoil and mulch-production business, where it has recently upgraded its production equipment to meet customer demands. Both the topsoil and the mulch businesses are closely associated with the quarry and construction businesses in that there is often brush, trees and overburden, including topsoil, to be removed at these sites.
Greger Topsoil & Mulch — named after its founder, David Greger — was acquired by H&K in 2003. H&K purchased the 35-year-old company in order to have a strong presence in the topsoil and mulch business.
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Until recently, Greger has been operating two types of portable processors/screens that were in place when H&K bought the company. However, this year, the company purchased a new McCloskey trommel screener Model 621RE with an extended hopper and an optional 42-in.-wide discharge belt. See chart for specifications on the new screener.
Mike Petriello, operations manager for the company, says they carefully scrutinized four makes of portable screeners before deciding on the McCloskey product. He says, "All of the equipment we looked at had their good points, but the McCloskey product had certain features that the other makes did not have and they were very important to us. Also, not only is the McCloskey product quality-built, but the local distributor [Commonwealth Equipment Corp.] has a very good reputation for reliable service."
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One of the most important features that Petriello is referring to is the quick-change drum, which he says none of the competitors' machines had. Petriello says, "The other trommel screeners require two men one day to exchange the drums. I realize that can be OK if the screener is used only for screening topsoil or mulch, but we use the screener to alternately screen both materials. Unlike the other screeners we considered, the McCloskey trommel drums can be exchanged in about 15 minutes by one man operating a track excavator that is used to hoist the drum in place," he says. "The point is, not only is there too much labor cost involved when exchanging the drums of the other trommels, but it also takes the screener out of production for the day."
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