VAA Annual Report 2021


02 ANNUAL REPORT 2021 2021BYTHENUMBERS 900 Connected Live 128 Companies 75 VA Committees & Events 1,200 VECAT Students Served 136 Proficiency Exams Given $70,000 $2,191,090 President’s Message At a recent meeting, I heard a speaker state, “I am not an optimist, but an actionist.” That statement made me pause for a second and reflect. Am I an optimist or an actionist? They are not the same; optimists have a positive outlook—but may not act. An actionist not only has an outlook but then does something—they act. As President of a long-standing solid association, I am responsible for looking at the current conditions and the future. Am I optimistic, or am I pessimistic about the conditions facing the asphalt industry? But as the speaker at the meeting stated, what actions I take regarding my outlook speaks volumes. My hope is this annual report will show your association was very active! Throughout 2021, the VAA Board of Directors and staff continually evaluated and acted. The first action was reducing tonnage fees by one penny per ton. One penny does not sound like a lot, and in the grand scheme of operations for many companies, it is not, but it was something VAA could do to support members. With strong association reserves, VAA could afford a reduction. Next, the annual meeting was moved from April to June. Moving the meeting two months into the year allowed vaccination rates to increase and, hopefully, COVID infections would decrease. At the same time, VAA hired Tigre Hammond to be our Member Relations Specialist. With the support of the Directors, VAA decided to minimize the registration cost to members, non-members and vendors at VAA-hosted events. Again, the focus was not on VAA’s bottom line but the industry’s health. VAA refused to allow cost to be a barrier for In 2021, VAA hosted multiple events, produced a magazine and newsletter, and hosted a website and news center. All were geared toward connecting members and providing the most current and innovative training and information. VAA is proud to count many asphalt industry companies as members. VAA represents and advocates for the asphalt industry tirelessly throughout the year. The VECAT partnership has served students both online and in the classroom using the latest in technology and innovation. Awarded in scholarships. Association reserves have steadily increased over the last decade. VAA has diversified its revenue stream to be less dependent on any one area: • Investment Return: 27% • Meetings: 17% • Round Robin: 5% • Misc: 11% • Tonnage: 25% • Member Dues: 10% • Scholarship: 5% 100,000 Reached Through Virtual Meetings, Digital & Print Media 10 National & International Events 2 MCS Classes Taught In Person 1,304 VDOT Credentials Awarded people to come together, learn, market and enjoy fellowship. The final significant action was hiring a lobbying firm to represent Virginia’s asphalt industry in Richmond. This was a first for VAA, which has traditionally focused on being a technical organization. As you read our 2021 VAA Annual Report, I hope you gain an appreciation for your association’s efforts in 2021 and the actions planned for 2022.

VAASPHALT.ORG 03 2021 BY THE NUMBERS 02 STRATEGIC PLAN 04 Pillar 1: Represent 06 Pillar 2: Connect 08 Pillar 3: Educate 10 RJ Schreck Scholarship 11 Pillar 4: Lead 12 FINANCIAL HEALTH 14 Association Reserves 15 Combined Revenue 16 Number of Members Over Time 16 Membership 17 LOOK AHEAD TO 2022 18 INSIDE THE REPORT VIRGINIA ASPHALT ASSOCIATION Trenton M. Clark, P.E., President 7814 Carousel Lane, Ste 310 Richmond, VA 23294 Phone: (804) 288-3169 Email: On the Cover: 2020 Golden Lute Paving Award winner. Allan Myers paving project Chesapeake Bay Bridge Tunnel. VAA Board of Directors: Back row (left to right): Tim Boone; Ed Dalrymple, Jr.; Kevin Jones; David Branscome, Jr.; Ken Arthur; Chris Blevins; Trenton Clark. Front Row (left to right): David Horton, Lonnie Minson, Blair Williamson, Jerry Short, Scott Claud, David Helmick, David White.

04 ANNUAL REPORT 2021 Superior Paving Plant at Bull Run. STRATEGIC PLAN

VAASPHALT.ORG 05 MISSION VAA promotes the increased use and quality of asphalt pavements in Virginia. VISION To be the united voice for the Asphalt Industry resulting in the betterment of society. STRATEGIC PLAN VAA LEAD EDUCATE CONNECT REPRESENT Four pillars comprise VAA’s strategic plan—represent, connect, educate and lead. Each supports the three core areas of the association—technical services, member services and training/education. While the ongoing pandemic hampered some “normal” activities, it did not stop the association’s Long-Range Strategic Planning Committee (LRPC). After a series of meetings, the Board of Directors voted to add a fourth core area—lobbying, based on the recommendation of the LRPC.

06 ANNUAL REPORT 2021 VAA staff were heavily involved in Balanced Mix Design, including round robin testing, training and implementation. VAA reviewed and commented on numerous VTRC, NCAT, NAPA and TRB reports that will impact the industry. Voice the Interests of Association Members REPRESENT VAA observes Allan Myers CCPRM project on I64. Discussion with the Department held in October, gives the VAA Board of Directors a platform to discuss industry issues with VDOT.

VAASPHALT.ORG 07 STRATEGIC PLAN: REPRESENT Mike Dudley instructs students in a VECAT Balanced Mix Design class. One of the industry’s most pressing educational concerns. VAA is active on many committees. Here Trenton Clark attends the PAVRAC meeting.

08 ANNUAL REPORT 2021 CONNECT 900 100,000 Connected face to face. Reached through virtual meetings and media. Connecting people provided challenges in 2021. Initially, seminars were virtual, and affiliate marketing was restricted to Innovation Connection webcasts. By late June, as COVID eased, a near-record attendance was set for the Annual Meeting. The Discussion with the Department event had a large in-person and virtual attendance. And by December, the Mid-Atlantic Asphalt Expo & Conference (MAAE) had over 600 attendees. Scholarship golf outings were held throughout the year, and VAA launched a news app for smartphones—VAA News. Lastly, the Women of Asphalt Virginia Branch was established to connect women and others in the asphalt industry. Bringing Members, Customers and Clients Together Mike and Stephanie Dudley at the VAA Annual Meeting.

STRATEGIC PLAN: CONNECT 09 VAASPHALT.ORG 2021 Mid-Atlantic Asphalt Expo & Conference. Over 600 attendees and 70 exhibitors connected. Ron White, Mark Schiller, Dennis O'Connor and Scott Claud at the Past President's dinner in White Sulphur Springs. Sheretta Byrd speaks at the first Women in Asphalt VA branch reception at Lewis Ginter Botanical Garden. Reconnect Reception. Allowing members and VDOT to connect and network in a relaxed atmosphere.

10 ANNUAL REPORT 2021 EDUCATE Industry training and support took many forms in 2021. VAA held Talking Pavements webcasts to educate the public on asphalt issues. Nearly all VECAT credentialing classes were held virtually, causing numbers to decline by 13%. VAA partnered with VTRC, VDOT and GCC to develop balanced mix design training classes for 2022. Additionally, VAA spent time revising several VECAT study guides and class presentations for use in 2022. The most significant accomplishment in 2021 was the establishment of the Virginia Infrastructure Academy (VIA). VAA and other construction trade associations partnered with the Virginia Community College System to establish VIA. Since then, more companies and associations have been added and funding secured to address the critical shortage of skilled employees. Training and Workforce Development Support for Member and Non-Member Companies and Government Entities Virtual proficiencies were used to continue to award credentials in Plant and Mix design. Travis and Tyler Cable at Colony Construction. Rob Crandol, Mike Dudley and David Lee conduct the virtual Asphalt Seminar. VECAT Material Certification Classes.

VAASPHALT.ORG 11 RJ Schreck Scholarship The Richard J. Schreck Scholarship is one of VAA’s proudest accomplishments and shows our commitment to our members and the asphalt industry’s future. VAA established the scholarship to assist dependents of VAA member companies in furthering their education beyond high school. This program is managed under the auspices of the NAPA Research and Education Foundation (NAPAREF) Scholarship Program, a 501(c)3 organization. Only dependents/spouses/employees of VAA member companies are eligible to apply. Eligibility includes all incoming freshmen and first-year attendees at a post-high school institution (i.e., trade school, colleges, universities). Also, those students currently enrolled in post-high school institutions may apply. In 2021, VAA awarded $70,000 in scholarships. $70,000 Awarded in scholarships in 2021. STRATEGIC PLAN: EDUCATE

ANNUAL REPORT 2021 12 LEAD While very involved in committees and technically serving members, VAA led two new and significant efforts. First, VAA partnered with Headlight to develop Smart Forms software. Smart Forms will allow electronic collection and reporting of field data. Second, VAA hired Spotts Fain Consulting (SPC) to represent the industry in Virginia. SPC will be focused on legislation impacting the asphalt industry and assist with other legislation related to the construction industry. These are historic changes to VAA’s fourth pillar. The Leadership and Resources to Benefit Members and Industry The VAA team who help to lead the industry daily. Trenton Clark, David Lee, Tigre Hammond and Mike Dudley. Trenton Clark, David Branscome Jr., David Branscome and Jamie Bowman at the VAA Annual Meeting. David Lee leads the discussion during a VECAT Slurry Seal class.

VAASPHALT.ORG 13 STRATEGIC PLAN: LEAD RVAV ensured that the Discussion with the Department was professionally produced for both in person and online attendees. Mike Dudley demonstrates a Cantabro Test, one of the primary tests used in balanced mix design. Mike Dudley presents lab review certificate to David Carpenter of Lee Hy Paving. Lab reviews began in 2021 as a way to help industry review and compare their labs to specifications. Trenton Clark leads old-timers panel at VAA Annual Meeting.

14 ANNUAL REPORT 2021 FINANCIAL HEALTH Virginia Paving Company award winning City of Fairfax project.

VAASPHALT.ORG 15 VAA is a 501c6 non-profit organization, and stable finances are critical to the association’s mission. VAA relies on several revenue streams, including annual membership dues, producer member tonnage fees, training and education services, events and investments. At the start of 2021, these revenue streams were in question. Other than investments held by the association that seemed to be performing well in the market, the additional income streams were in question. How many tons would be laid in 2021? How many members would drop out due to financial pressures? How many VECAT classes would be held? Would VAA be able to host its most productive meetings? These were all unknown, but VAA was in a solid fiscal condition due to investments and had fully-funded reserves. Therefore, it was possible to reduce tonnage fees by one penny and minimize income on events. Entering 2021, VAA anticipated a slow first half of the year—but revenue would increase in the second half. The outlook was based on the increased vaccination rates for the public and the opening of community colleges for in-person VECAT training. Unfortunately, many college campuses were closed or restricted for much of the year. Likewise, with the extension to materials certification school credentials until January 31, 2022, lessening the impetus to renew credentials, the anticipated number of students was fewer (down 13% compared to 2020). And while in-person events hosted by VAA were very well attended, VAA decided to run these events at approximately breakeven to support membership and industry. While MAAE 2021 did generate a profit, it was intentionally smaller than initially budgeted. Fortunately, the asphalt paving market was robust. As a result, reported tonnage by VAA members exceeded the budgeted tonnage (9.5+ million) and made up for some of the projected reduction in association income. Overall, VAA’s operating income came from tonnage fees (34%), meetings and conferences (23%), membership dues (14%), VAAES (12%) and special projects (18%). Total income for the association with other sources (i.e., investment gains and PPP loan) exceeded $2 million. FINANCIAL HEALTH Association Reserves Over Time 2011‒2021 †2021 thru Dec 31, 2021 $543,569 $704,067 $668,102 $654,325 $770,754 $777,241 $788,027 $951,761 $950,646 $1,690,694 $2,191,090 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 †2021

16 ANNUAL REPORT 2021 FINANCIAL HEALTH Combined Revenue‒7 Year Trend $2,500,000.00 $2,000,000.00 $1,500,000.00 $1,000,000.00 $500,000.00 $- 2015 2016 2017 2018 2021 2020 2019 Tonnage Member Fees Meetings & Conferences VAAES Reimbursement Scholarship VAA Other Income VAA Investments VAAES Income Total Number of Members Over Time 2014‒2021 †2021 thru Dec 31, 2021 Contractor Associate Contractor Affiliate Total 2014 2015 2016 2017 2018 †2021 2019 2020 140 120 100 80 60 40 20 0

MEMBERSHIP Entering 2021, the status of several members was unknown. The previous year provided challenges to large and small companies in every category of membership—so how many members would resign and how many new companies would join? The Board of Directors endorsed several efforts to support current members and attract new members. These included reducing tonnage fees by one penny, providing VAA-sponsored online marketing opportunities (i.e., Innovation Connections), planning a low-cost annual meeting and MidAtlantic Asphalt Expo & Conference, and continuing the membership incentive program. By the end of the year, VAA had seen 12 companies resign. However, VAA welcomed 16 members to the family. For the first time in over a decade, four producer contractor members joined, and a fifth had submitted an application for membership in late December. Along with new producers, VAA had 12 affiliate member companies join. As a result, the VAA family grew to 128. VAASPHALT.ORG 17 VAA member Old Dominion Equipment exhibiting at the Mid-Atlantic Asphalt Expo & Conference. New producer member Aggregate Industries. New producer member J C Joyce Trucking & Paving Co.

18 ANNUAL REPORT 2021 LOOK AHEAD TO 2022 Aleksandra Wojcik works Women of Asphalt VA booth at Mid-Atlantic Asphalt Expo & Conference.

VAASPHALT.ORG 19 LOOK AHEAD TO 2022 While 2021 provided many challenges, the establishment of the Long-Range Planning Committee (LRPC) in January focused on future opportunities. Dubbed Vision 2030, the main questions posed to the LRPC were: What will the transportation industry look like in 2030, and how will VAA adapt to support the asphalt industry in 2030? The committee will continue to address these broad and complex questions in 2022. The first recommendation from the LRPC was to hire a lobbying firm to represent the industry. In the coming year, lobbying efforts by the association and members will continue. Many of the traditional events for VAA have or are being planned. VAA will meet in Charleston, SC, for the 71st annual meeting. In October, a new look Discussion with the Department event and inaugural 2022 RJS Asphalt Open Golf Tournament will be held at the Kingsmill Resort. Finally, the 2022 Mid-Atlantic Asphalt Expo & Conference will build on the success of 2021 with excellent general, technical and training sessions to accompany a fabulous exposition hall. VAA will continue to aid members in implementing balanced mix designs (BMD). Staff will work with VDOT to evaluate and adjust the specs and provide technical support to members. Along with BMD, VAA will be rolling out Smart Forms from Headlight in March. This will be a giant step forward for the industry regarding e-construction by reducing computation errors and eliminating paper submissions of test results. VECAT and the educational training by VAA will expand in 2022. VAA and partners will host organized training for industry and VDOT regarding BMD in the first part of the year. In addition, VAA staff will be providing in-person credentialing training for 10 different subject areas as part of VECAT. By the middle of 2022, many of the VECAT manuals will be revised. Finally, VAA and GCC will develop asphalt education and training classes for launch in 2023. The initial focus will be on asphalt plant and mix design technicians. Once completed, efforts will turn to asphalt-related field subjects for 2024. With the passage of the Bipartisan Infrastructure Law (BIL) in November 2021, more workers will be needed. Many will not have the skills the infrastructure industry needs. VAA will be heavily involved in the Virginia Infrastructure Academy (VIA). VAA and member input will be critical in developing introductory training classes as well as hiring VIA graduates and providing additional skills enhancement. For a small association, the plans for 2022 are enormous. However, VAA staff will not be acting alone – but with members' support, involvement and leadership. In addition, VAA will lean on partners outside of the organization such as Germanna Community College, Virginia Community College System, National Asphalt Pavement Association, VDOT/VTRC and sister trade associations. While VAA and its members retain a vast amount of knowledge, we recognize the expertise of outside resources. Wisdom is knowing what you do know, accepting what you don't know, and being willing to ask for help. This philosophy has served the association in the past and will continue going forward.

7814 Carousel Lane, Ste 310 Richmond, VA 23294 Branscome, Inc. award winning Richmond International Airport project.