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Throughout his 25-year career, President Scott Summers of ARB Inc.’s Underground Group has seen the highs and lows underground construction can experience. That is why he hopes the industry can right itself so it doesn’t pay for the cost inflation of labor and equipment resources in the future.

“2009 will be busier than 2008, and the industry as a whole is strapped with the shortage or limited supply of skilled labor and specialty equipment,” he says. “We need to determine how to manage this spike as an industry to keep prices from going through the roof and suffering the consequences of inflated prices for the next four or five years.”

For instance, Summers says one of the ways prices skyrocket is when companies hire key people away from other companies. “One way to drive up prices is to start hiring other people’s people by throwing unrealistic money at them for a short-term need,” he adds. “My plea to everyone else in the industry is, we need to be cognizant that the seeds we sow today are what we reap in the future.”

ARB Underground Group’s pipeline and related infrastructure construction is the foundation for ARB Inc.’s 60-plus year history. The Underground Group constructs pipelines and the related infrastructure across a number of disciplines covering petrochemical and natural gas transmission and distribution pipelines, water and sewer pipelines, fiber optic cable and conduit installation, and horizontal directional drilling.

Summers took time to speak with Construction Today about the current state of the underground industry, ARB’s retention efforts and an environmentally sensitive project.

Construction Today: How would you describe your relationships with subcontractors?
Scott Summers: We subcontract very little of the work we perform, but we treat our subs like we would want to be treated ourselves. It’s extremely important, but the big thing we look for is somebody who we can depend on because our customers are depending on us, and that is why relationships are so important. We want subcontractors with a proven track record.

CT: How is the market changing?
SS: There is not enough qualified contractor capacity in the pipeline industry, which is the opposite of what it was five years ago. Now there isn’t enough of a skilled work force to do the work.

CT: How are you combating this?
SS: We have always done our own training, trying to bring more skilled workers into the work force. Plus, we do a lot of cross-training between internal divisions. We also are more selective about what kind of work we do and where and what kind of contracts we sign.

The nice thing about being in California is we have a 12-month construction season. The underground labor is nomadic by nature because of a rainy season and a work season. We maintain about 1,200 employees year round, and we spike up to 1,600 [during the summer season]. By and large, most of the people that work for us full-time do it because they know they will have a steady job all year every year.