National Perspective on the Asphalt Pavement Industry Mike Acott NAPA President Asphalt Pavement Association of Indiana Annual Winter Conference Indianapolis, Indiana January 9, 2014 1 © Copyright 2012 Daniel J Edelman Inc. Intelligent Engagement OUR MISSION IN 2013 • Advance Research & Deploy Innovative Asphalt Technology • Achieve Significant Progress on PEC Projects • Expand APA’s Impact/Outreach • Strengthen State and National Legislative Support • Respond to Regulatory Threats • Expand Go-To-Market Effort 2 Goal: Advance Research and Deploy Innovative Asphalt Technology to Enhance Performance and Reduce Cost 3 FHWA/NAPA COOPERATIVE AGREEMENT • NAPA has been awarded a $2.5 million agreement for “Advancement of Innovative Asphalt Technology” • Partnership provides a mechanism to advance innovative technologies • Agreement is for 5 years, FY 2014-2018 4 FHWA/NAPA COOPERATIVE AGREEMENT • Leverage NAPA’s expertise in leading innovation advancement including: • RAP, RAS, WMA Survey for 2013 • RAP Management Best Practices • Recycled Tire Rubber Best Practices • Mix Type Selection Guide update • Thin Asphalt Overlays update • LCCA Webinar? 5 FHWA/NAPA COOPERATIVE AGREEMENT • The innovation team includes: • NCAT • Texas A&M Transportation Institute • Advanced Asphalt Technologies • Industry Consultants • State Asphalt Pavement Associations 6 RAP, RAS & WARM MIX DEPLOYMENT 2009 2011 2012 RAP 16.2% 19.1% 19.6% National Average RAS .70 WMA 16.8 1.2 1.9 Tons Millions 68.7 86.7 Tons Millions 7 WMA Usage Percentage of Total Asphalt Production in US • 8 25% 20% 15% 24 % 19 % 10% 5% 11 % 5% 0% 2009 2010 2011 2012 8 ASPHALT PAVEMENT RESEARCH AT NCAT • Respected By Our Customers • Focus on RAP, RAS, Warm Mix, Thinner Pavements, Pavement Preservation, Perpetual Pavement, etc. • Recommendations on LCCA Procedures 9 Goal: Achieve Significant Progress on PEC Projects 10 PAVEMENT ECONOMICS COMMITTEE Six NAPASAPA Task Groups $1 Million Program Funded by NAPA & SAPAs with 100% SAPA Participation 11 PAVEMENT ECONOMICS COMMITTEE Six NAPA-SAPA Task Groups Best Quality and Competitiveness Pavement Design Environmental Sustainability Legislative Pavement Preservation Pavement Type Selection 12 PAVEMENT ECONOMICS COMMITTEE Examples of PEC Projects • Optimize Pavement Design & Materials • Enhance Life Cycle Assessment Software to Include Pavement Smoothness • Unintended Consequences of Reflective Pavements • Develop Thinlays with High Recycled Content • Prevent Passage of Pavement Type Mandates at State and National Level 13 PEC: PVI Smoothness Study Project Objectives • Michigan Technological University to compare smoothness o asphalt pavements to concrete • Enhance LCA Software to Include Pavement Smoothness Methodology • Use FHWA’s LTPP database to compare pvmt smoothness • Identify rate of pavement deterioration (IRI) over time Results • Initial results: asphalt is smoother than concrete • Additional work is being conducted to relate to fuel savings 14 IRI vs. TIME IRI (m/km) HMA US-127 PCC US-23 15 Time (year) PEC: Reflective Pavements Study Project Objectives • Arizona State University Reviewed literature to identify unintended consequences • Submit for publication in peer-reviewed journal Methodology • Review Lawrence Berkeley Nat’l Lab’s modeling • Examined for unintended consequences of reflective pvmts Results • Study report posted on ASU web site • ASU raises concerns about Lawrence Berkeley’s models • ASU concluded that reflective pavements may have substantial 16 negative impacts Goal: Expand Asphalt Pavement Alliance’s Impact/Outreach 17 ASPHALT PAVEMENT ALLIANCE Coalition of NAPA, AI, SAPAs Increased Investment in APA with $1 million budget Sales & Field Deployment “Asphalt FACTS” Program 18 Goal: Strengthen State and National Legislative Support 19 STRENGTHEN STATE & NATIONAL LEGISLATIVE SUPPORT • Implemented State Legislative Tracking System • Strengthened Staff and Hired Lobbyist Firm • Michele Stanley and Whitmer & Worrall • Advocacy Handbook Completed • Plant/Project Tours & Constituent Meetings • Conducted First Asphalt Fly-In • Grow NAPA PAC 20 LEGISLATIVE KEY MESSAGES • Urge Congress to swiftly enact a six year, user-fee funded Surface Transportation Authorization bill to stabilize and grow the Highway Trust Fund • Pavement design issues should be left to state engineers • Reauthorize the Accelerated Implementation and Deployment of Pavement Technologies Program 21 Goal: Respond to Regulatory Threats 22 CRYSTALLINE SILICA RULE - INDUSTRY PATH FORWARD • Known hazard • First “PEL” in years • Proposed Rule published Sept 12th • Proposed Rule requires respirators • Industry is wellpositioned for milling 23 MILLING MACHINE PARTNERSHIP • 10-year Partnership includes Industry, NIOSH, and Unions • Focus has been on validating engineering controls • Water spray and evacuation systems effective • Best Practice Guidelines available • Goal is to protect workers while removing respirator requirements 24 OUR MISSION IN 2013 • Advance Research & Deploy Innovative Technology • Achieve Significant Progress on PEC Projects • Expand APA’s Impact/Outreach • Strengthen State and National Legislative Support • Respond to Regulatory Threats • Expand Go-To-Market Effort 25 Goal: Expand Go-To-Market Effort 26 GO-TO-MARKET PLAN • Expand Program • Increase Financial Support • Leverage Strengths of All Industry Resources – NAPA, SAPAs, APA, NCAT, AI • Leverage the Power of the Asphalt Industry’s Grassroots 27 GO-TO-MARKET PLAN DEVELOPMENT • Agreement with Edelman • Guided by Market Research • Media Analysis • Rapid Response Program • Leverage PEC Projects 28 MARKET RESEARCH Qualitative and Quantitative research, measure attitudes, and opinions • State DOTs, design/build firms, tollways, public works, engineering firms • In-Depth Interviews • Online survey distributed to 650+ respondents - 221 responses received 29 RESEARCH: GENERAL FINDINGS The asphalt pavement industry is considered an important partner helping to address the issues facing agencies today. • Pavements are a significant investment for agencies and they look to the industry as technical experts • The asphalt industry is viewed positively • Respondents are particularly interested in the cost effective advancements in pavement technologies • Decision makers pay attention to driver stakeholders 30 MEDIA ANALYSIS • Assessed Media Coverage for Asphalt and Concrete Over a 12 Month Period • Metrics Include – Tone/Favorability – Key Messaging and Positioning – Topics Driving Coverage • Asphalt has more media coverage than concrete 31 RAPID RESPONSE PROGRAM • • • • • • Twice weekly report with recommendations Covers earned media only Predominantly trade publications Low coverage for either side balanced mentions Coverage largely neutral Many opportunities for positive coverage 32 PATH FORWARD • IDI’s Finalized • Quantitative Survey Finalized • • • • • Completed Messaging Workshop Ongoing Media Assessment Maintain Momentum With PEC Projects Go-To-Market Plan Developed Making it All Fit Together STAY TUNED! 33