NRMCA Publication Number 101

Guidelines for Conducting a Production Reporting Program

First Edition July 2007

This publication was written by the Production Reporting Task Group of the National Ready Mixed Concrete Association Board of Directors

Copyright 2007 by the National Ready Mixed Concrete Association All Rights Reserved

Forward
This publication was written by the Production Reporting Task Group of the NRMCA Board of Directors. The Task Group was formed by the NRMCA Board of Directors in 2005. The Task Group met several times between September and December 2005 to develop a pilot program in three different cities to collect concrete production data. The pilot program was started in January 2006 but was stopped in the third quarter 2006 due to lack of participation. The Task Group met again in late 2006 to develop alternative strategies for developing a national production reporting program. It was noted that several NRMCA State Affiliates conduct their own programs and the Task Group decided to survey the State Affiliates to determine their best practices and experiences. NRMCA conducted a survey of State Affiliates in late 2006 to:

Determine if there are similarities with national and state production reporting programs Determine if NRMCA and its State Affiliates can work together on production reporting Develop a mechanism for collecting and reporting production on a local, regional, and national level

Thirty-seven of 46 State Affiliates responded to the survey. Nine of the respondents indicated they currently conduct production reporting programs and most collected similar information about concrete production in their state or region. Several of the respondents who did not have a production reporting program indicated they would be interested in initiating one in their state or region. Several respondents indicated they would be willing to work with NRMCA to develop a production reporting program. The Production Reporting Task Group then formed an industry-wide Production Reporting Working Group to engage NRMCA members, NRMCA State Affiliates and cement industry representatives to help develop guidelines for establishing production reporting programs at the state and regional level that could eventually be leveraged into a national production reporting program. The result of the work is presented in this publication. Members of the task group and working group who participated in developing this publication included: NRMCA Production Reporting Task Group Greg Sheardown, Lafarge, Chairman Lionel Lemay, NRMCA, Staff Liaison Bob Sells, Titan America Glenn Ochsenreiter, NRMCA James Schelzi, Aggregate Industries Karl Watson Jr., Rinker Robert Garbini, NRMCA Wally Johnson, US Concrete NRMCA Production Reporting Working Group Greg Sheardown, Lafarge, Chairman Lionel Lemay, NRMCA, Staff Liaison Bernie Cawley, Michigan Concrete Association Bob Sells, Titan America Craig Schulz, Portland Cement Association Glenn Ochsenreiter, NRMCA Hardy Johnson, Titan America James Schelzi, Aggregate Industries John Rabchuck, Systech Karl Watson Jr., Rinker Christy Martin, Concrete Promotional Group, Inc. Patrick Kiel, Indiana Ready Mixed Concrete Association Patrick Reardon, Northeast Cement Shippers Association Ray McVeigh, Great Lakes Cement Promotion Association Rita Madison, Arkansas Ready Mixed Concrete Association Robert Garbini, NRMCA Tom Evans, Maryland Ready Mixed Concrete Association Wally Johnson, US Concrete

Disclaimer
NRMCA and its members make no express or implied warranty with respect to this publication or any information contained herein. In particular, no warranty is made of merchantability or fitness for a particular purpose. NRMCA and its members disclaim any product liability (including without limitation any strict liability in tort) in connection with this publication or any information contained herein.

Table of Contents
Introduction Reasons for Conducting a Production Reporting Program Policies and Procedures Sample Cover Letter Sample Antitrust Policy Statement Sample Production Reporting Antitrust Policy Sample Production Survey Basic Sample Production Survey Detailed Sample Survey Instructions and Definitions Sample Production Report Page 5 Page 6 Page 7 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19

Guidelines for Conducting a Production Reporting Program

Introduction
Successful businesses use information to drive strategies. They have disciplined methods for collecting research and incorporating findings into their decision making process to ensure a high probability of success. Whether gathering data about their customers needs, the economic climate or their own internal processes, data driven decision making distinguishes the truly great businesses from the merely good. Data can come from many sources and can be presented in many forms. A company can conduct formal market research. It can collect data and create knowledge by conducting informal research through conversations with customers. And finally, it can collect information through participation in trade association survey programs. NRMCA periodically conducts several surveys, including the annual Industry Data Survey and the biannual Compensation Survey. These surveys help ready mixed concrete producers benchmark their businesses against the rest of the industry. NRMCA members are also interested in tracking promotion effectiveness by conducting concrete production reporting surveys. A concrete production reporting survey collects information about the amount of concrete produced during a specific time period within a specific region. In addition to total production, information about how concrete is used for different project types and for different applications can also be collected. Tracking this information helps associations gage effectiveness of industry promotion programs and individual companies gage their promotion effectiveness as compared to the rest of the industry. This document provides guidelines on how state and local associations can conduct concrete production reporting programs for their members to help them in their knowledge gathering process. It describes how an industry association can work with its members to collect and disseminate data about the industry that can be combined with other data collected by individual members to enhance their decision making abilities. NRMCA members encourage its State Affiliates to conduct production reporting programs for their state or region. It is hoped that State Affiliates would share results of the surveys with NRMCA so a national production report based on data collected by each State Affiliate could be produced.

Reasons for Conducting a Production Reporting Program

Reliable business data, including one fundamental metric product share information is vital as the concrete industry tracks and improves performance against competing industries and as individual companies track and improve performance against their industry competitors. Industries as diverse as petrochemicals, media and breakfast cereals have long had access to this critical information. By conducting a concrete production reporting program a state or regional ready mixed concrete association can help its members take advantage of timely product share data. There are many good reasons for a state or regional ready mixed concrete association to conduct a production reporting program, including:

Provides an opportunity for communication between member companies and association staff to discuss the value of market development Useful for evaluating the effectiveness of promotion efforts Helps measure return on investment in promotion Helps track concrete usage and market trends Adds value to being a member of the association

There are also many reasons for a ready mixed concrete company to participate in a production reporting program, including:

Gets vital feedback on company performance Compares performance with overall industry performance Provides product share data for its area Provides a better understanding of its business and industry Provides knowledge of how the business is performing relative to direct competition Increases awareness of value added products Provides knowledge to assist in investment decisions Participation is quick and easy The survey is conducted under strict compliance with antitrust policies Company data is held in strict confidentiality

Once a state or regional association decides to conduct a production reporting program it will have to promote participation by its members to increase probability of success. Potential participants must understand the importance of their participation in the survey and the benefits of receiving the reports. Presentations on the benefits of participating in the program should be made at annual meetings and directly to key decision makers within member companies to secure their commitment to participate.

Policies and Procedures

When an association decides to conduct a production reporting program it is critical to follow well defined policies and procedures that are approved by the association membership. The policies and procedures should be written and reviewed annually and reviewed by legal council to ensure compliance with antitrust laws. This chapter provides background information on antitrust laws and tips for minimizing antitrust risk. It also provides suggested procedures for conducting a survey and what information should be included in the survey. It also includes details of what should be included in the production report that will be distributed to the survey participants once the data is collected.

Antitrust Policies
When conducting a production reporting program it is critical that the association and the survey participants understand and follow the antitrust laws. The federal antitrust laws, as detailed in the Sherman and Clayton Acts and the trade regulation statutes of the Federal Trade Commission Act, were enacted to promote fair and open competition. State antitrust laws are similar to federal antitrust laws. There is a broad range of lawful activities for associations to undertake relating to standard setting, certification of products or professionals, dispute resolution, and data collection and reporting that are perfectly lawful and beneficial to the industry as a whole. In fact many trade associations have as one of their key activities the collection and dissemination of information about production, sales, price, costs and other business related information. Statistical surveying was one of the main reasons associations were formed in the first place. The collection and dissemination of industry data has been found to increase competition among competitors and there is little risk of violating antitrust laws so long as certain guidelines are followed. The following are guidelines to follow that will minimize risk of antitrust violation1:

Avoid agreements or actions that relate to product prices or professional fees Avoid agreements or actions that restrict non deceptive advertising Avoid agreements or actions that constitute a boycott Avoid agreements or actions that could be construed as representing a division or allocation of markets among competing companies Avoid agreements or actions that tie the provision or purchase of one good or service to the provision or purchase of another good or service Avoid agreements or actions that appear likely to have the effect of raising prices or fees or reducing the quantity or quality of available goods or services Adopt an association antitrust policy statement to assist association staff and members in understanding the need to comply with the antitrust laws. See page 14 for a sample association antitrust statement Only gross sales, production, average prices or costs, or other composites should be reported in an association's dissemination of statistical information No composite data should be reported in a category where only a few submissions were received, thereby permitting the submitters to gauge their competitors' submissions

Individual submissions should be confidential The individual submissions should be destroyed once they have been used to determine the reportable composite data2 Only historical information should be collected and reported Participation in any statistical program should be voluntary Distribution of results can be limited to those who provide input to the program There must be no explicit or implicit agreement by members or other users to take action in response to the data published by the association Association staff should not have discretion to make subjective determinations of composites, missing data and so on In publishing statistical information, neither the association nor any volunteers, employees or consultants should make exhortations or recommendations for action by members based on the information Results of association statistical programs, if they become very important or essential for doing business, will have to be made available to nonmembers as well as to members. Nonmembers can be charged more than members for participation to reflect members dues support for the program Avoid publication of inaccurate and damaging information or statistics regarding individuals, entities, products or services The association should develop and publish a production reporting antitrust policy so association staff and members can understand the antitrust laws relating to statistical surveying and the importance of following the antitrust policy. See page 15 for a sample production reporting antitrust policy. Consider using an outside agent to collect and compile statistical information for association programs

Notes:

1. Adapted from Jerald A. Jacobs and David W. Ogden, Legal Risk Management for Associations,
American Psychological Association, Washington, DC, 1995

2. Some ready mixed concrete associations that have been conducting production reporting
programs for a period of years suggest retaining the individual surveys for a period of years such that past reports can be compared with current reports. This is especially helpful if different producers report from year to year. When that occurs it would be useful to identify a core group of companies that consistently report from year to year and compare the year over year production from this core group. This would provide a more consistent measure of trends for concrete use for different project types and applications. When individual surveys are kept on file it is critical that they be stored in a secure location, typically at the offices of an outside agent who is collecting the information, so as to maintain complete confidentiality. In addition, a document retention policy should be established so that the individual surveys are destroyed after a certain period of time, usually between 3 and 7 years.

Survey and Report

The actual survey that is sent to participants should be clear and easy to understand. The information requested in the survey should include the company name, name of the person completing the survey, clearly defined survey area, clearly defined survey period and well defined categories for which concrete production data is being collected. The survey should also include instructions for completing it, where it should be sent and the deadline for completion. Sample surveys are provided on pages 16 and 17. At a minimum, a production reporting survey should be conducted annually at the beginning of each year for the prior year. The survey should be sent to participants within the first four weeks of each year and surveys should be completed and returned no later than eight weeks after the surveys are sent out to prospective participants. Some participants will return surveys within the deadline without additional reminders but most will require several reminders via mail, e-mail and telephone. The surveys can be sent via mail or e-mail. The survey package should include:

A cover letter explaining the survey and what is included with the letter (see page 13 for a sample cover letter) The survey form (see pages 16 and 17 for sample surveys) Definitions of survey terms and reporting categories (see page 18 for sample definitions) The associations antitrust policy statement (see page 14 for sample association antitrust policy statement) The associations production reporting antitrust policy (see page 15 for sample production reporting antitrust policy)

Once the data is collected a report containing composite data collected from individual companies should be produced and mailed or e-mailed to survey participants. The report should be delivered no earlier than April 1 of each year (or three months after the end of the survey period) to ensure the data is interpreted as historical data. In addition, the survey should be delivered to participants no later than April 30 to ensure that the information contained in the report is still fresh and useful for making business decisions. At a minimum, a basic survey should collect data for Total Concrete Production along with data for three Project Types: Commercial Projects, Residential Projects and Non-Building Projects. A sample basic survey is shown on page 16. For those associations that choose to collect data for specific Applications within each Project Type, careful thought should be given to which Applications and how many are surveyed for each Project Type. Surveying too many Applications will discourage producers from participating. Only survey those Applications which the association has made a commitment to promote or for those Applications for which the association is concerned about losing product share to competing materials. The report should provide a summary of aggregated data collected. The most useful reports will compare the immediate survey period with the one immediately preceding it as a way to measure progress. More detailed reports might show a chart or graph comparing concrete production over a period of years. A sample report is shown on page 19. One problem sure to occur is that a different set of producers will report from year to year. This means the results will fluctuate from year to year not only because actual production changed but also because certain producers reported one year and not the next. Also, some producers might report in some categories and not others. One way to reduce the influence of reporting company variation is to produce a second report that tracks a core group of producers that consistently report from year to year. The independent company collecting data would have to review survey results over a period of several years to determine which companies

constitute the core group for each reporting category. Keep in mind the core group might change depending on the reporting category and it might change from year to year as different producers are added and dropped from the core group. Data collected should be held strictly confidential by the independent firm conducting the survey. No individual participants data should revealed to anyone other than the staff of the independent firm. It should not be possible for any individual companys data or trends to be identified except by the reporting company. If broad aggregation of results is not possible, due to limited response to a particular question, no data results should be reported for that question. Specifically, where only 1 or 2 companies report in any one reporting category in a given survey period, results should not be released under any circumstances. Where 3 or 4 companies report in a given year and one participant has a market share of 40% or more in any given category, results should not be disseminated for that category.

Survey Instructions and Definitions

Each survey should be accompanied by detailed instructions and definitions. The instructions should indicate the Survey Area, Survey Period and well defined Project Types and Applications. The following are definitions of survey questions and categories that should be used in conducting a production reporting program such that the survey information collected is consistent and meaningful. In addition, as the production reporting program expands to the national level, production reports from different states and regions will also be consistent. Survey Area The Survey Area is the geographical area for which the survey is being conducted. Survey participants should report on concrete delivered within the defined Survey Area. Survey Period The Survey Period is the period for which the data is being collected. Typically this is the previous calendar year (January 1 through December 31). Total Concrete Production Total Concrete Production is defined as the total number of cubic yards of concrete a company delivered within the Survey Area during the Survey Period for all Project Types. Project Types and Applications There are three major Project Types defined and several Applications defined within each Project Type. Commercial Projects Commercial Projects include office buildings, banks, stores, shopping centers and malls, restaurants, service stations, parking garages, high rise buildings, warehouses, manufacturing plants, freight terminals, schools and other educational facilities, dormitories, theaters, libraries, churches, hospitals, prisons, post offices and government office buildings. They also include agricultural applications such as barns, silos, machinery sheds, crop, silage and manure storage facilities. They also include assisted living facilities, nursing homes, hotels and motels as well as any multi-family dwellings that are four stories or higher. Participants should include all concrete supplied for supporting and enclosing the structures and the floors and walls (above and below grade), tilt-up walls, ICF walls, columns and beams. It also includes exterior site work such as curb and gutter, driveways, aprons, truck pads, other pavements, parking lots and sidewalks. Commercial Tilt-up Walls Includes only the concrete supplied for the tilt-up walls. Do not include concrete supplied for footings and floor slabs or any concrete supplied for applications outside the building envelope. Commercial Parking Lots Includes concrete parking areas, driveways, entrances and other site paving. This includes both plain and pervious concrete.

10

Commercial ICF Walls Includes concrete placed into insulating concrete forms for commercial projects. Commercial Concrete Frame Includes concrete placed into removable formwork above-grade, including slabs, beams, columns and walls. Do not include slabs on grade, foundations, basement walls or exterior site work. Residential Projects Residential Projects include all single and multi-family dwellings under four stories. It includes all concrete supplied for supporting and enclosing the structures, including floors and walls (above and below grade), including crawl spaces and basements plus exterior site work such as curb and gutter, parking lots, driveways, patios, pools and pool decks, sidewalks, porches and stoops. Residential Above-Grade Walls Includes concrete placed into above-grade insulating concrete forms (ICFs), removable forms or tilt-up walls on Residential Projects. Residential Parking Lots Includes parking areas serving more than two dwellings. Include concrete parking areas, driveways, entrances and other site paving. This includes both plain and pervious concrete. Residential Driveways Includes parking areas serving one or two dwellings. This includes both plain and pervious concrete. Residential Basement Walls Residential Basement Walls are defined as walls built below grade or partially below the first level. Non-Building Projects Non-Building Projects include all Project Types not included in Commercial Projects and Residential Projects. Non-Building Projects include water treatment plants, wastewater and storm water treatment plants, bridges, pilings and caissons, grout, engineered fill and flowable fill, shotcrete, tunnels, transit facilities, stadiums and other non-building recreational facilities, highways, streets and local roads, intersections and roundabouts, median strips, median and sound barriers, dams, underground utilities, airport runways, taxiways and aprons. Include all concrete supplied to build the structure and exterior site work such as curb and gutter, driveways, aprons, truck pads, other pavements, parking lots and sidewalks. Non-Building Parking Lots Includes concrete parking areas, driveways, entrances and other site paving. This includes both plain and pervious concrete. Flowable Fill Self leveling and self compacting, cementitious material with an unconfined compressive strength of 1200 psi or less. Flowable Fill is primarily used as a backfill material in lieu of compacted granular fill. Intersections Includes all concrete supplied as paving for Streets and Local Roads within an intersection. It does not include curb, gutter and sidewalk concrete. Streets and Local Roads Includes all streets and local road paving which is owned by municipalities or counties. This does not include curb, gutter and sidewalk concrete. Highways Includes highway paving that are owned by state or federal governments. This does not include curb, gutter and sidewalk concrete. Airport Runways Includes all paving for airport runways, including main runway and aprons. Bridges Includes all concrete for bridge superstructures, including beams, girders, decks, bridge piers, buttresses, foundations and retaining walls.

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Other Projects Includes all other projects not included in Commercial Projects, Residential Projects or Non-Building Projects. Other Applications Includes all other applications within a Project Type not specifically reported on or defined in the survey. See page 18 for a sample Survey Instructions and Definitions.

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Sample Cover Letter

Cal Q. Later, CPA Cal Q. Later and Partners 555 Main Street Hard Rock, USA 55555 (555) 555-5555

January 15, 2007 Hard Rock Ready Mix 999 Rock Road Hard Rock, USA 55555 Attention: Robert Rock This office represents the Hard Rock Ready Mixed Concrete Association (HRRMCA). We are responsible for surveying and collecting annual concrete production data from participating ready mixed concrete firms for HRRMCA. We request that you complete and return the attached 2006 Production Reporting Survey to us by February 15. The figures you report should include all concrete delivered in Hard Rock during the calendar year 2006. In addition to reporting the total concrete production, we are asking you to report concrete produced for three Project Types and concrete produced for specific Applications. Concrete production reported for these Applications will help us track the effectiveness and progress of HRRMCAs promotion efforts. Reporting by each company will be based on the honor system. There is no intention or desire to subject any company to an audit or similar review to verify the data submitted by you. To assist you, directions for completing the survey and definitions for each Project Type and Application are enclosed. Your data is held strictly CONFIDENTIAL by the accounting firm of Cal Q. Later and Partners, in strict compliance with the HRRMCA Production Reporting Antitrust Policy. You send your information directly to us. No individual participants data is revealed to anyone other than the staff of Cal Q. Later and Partners. It will not be possible for any individual companys data or trends to be identified except by your company. If broad aggregation of results is not possible, due to limited response to a particular question, no data results will be reported for that question. The HRRMCA Production Reporting Antitrust Policy is attached. Thank you for participating in this survey. If you have any questions, please feel free to contact me. Very Truly Yours,

Cal Q. Later
Cal Q. Later, CPA Enclosures

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Sample Antitrust Policy Statement

HARD ROCK READY MIXED CONCRETE ASSOCIATION ANTITRUST POLICY STATEMENT The Hard Rock Ready Mixed Concrete Association assigns the highest priority to full compliance with both the letter and the spirit of the antitrust laws. Agreements among competitors that unreasonably limit competition are unlawful under federal and state antitrust laws, and violators are subject to criminal fines and incarceration, civil fines and private treble-damage actions. Even the successful defense of antitrust litigation or an investigation can be very costly and disruptive. It is thus vital that all meetings and activities of the Association be conducted in a manner consistent with the Associations antitrust policy. Examples of illegal competitor agreements are those that attempt to fix or stabilize prices, to allocate territories or customers, to limit production or sales, or to limit product quality and service competition. Accordingly, it is inherently risky and potentially illegal for competitors to discuss under Association auspices, or elsewhere, the subjects of prices, pricing policies, other terms and conditions of sale, individual company costs (including planned employee compensation), the commercial suitability of individual suppliers or customers, or other factors that might adversely affect competition. It is important to bear in mind that those in attendance at Association meetings and activities may include competitors, as well as potential competitors. Any discussion of sensitive antitrust subjects with ones competitors should be avoided at all times before, during and after any Association meeting or other activity. This is particularly important because a future adversary may assert that such discussions were circumstantial evidence of an illegal agreement when viewed in light of subsequent marketplace developments, even though there was, in fact, no agreement at all. If at any time during the course of a meeting or other activity, Association staff believes that a sensitive topic under the antitrust laws is being discussed or is about to be discussed, they will so advise and halt further discussion for the protection of all participants. Member attendees at any meeting or activity should likewise not hesitate to voice any concerns or questions that they may have in this regard. Adopted by the HRRMCA Board of Directors, January 1, 2007.

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Sample Production Reporting Antitrust Policy

HARD ROCK READY MIXED CONCRETE ASSOCIATION PRODUCTION REPORTING ANTITRUST POLICY Hard Rock Ready Mixed Concrete Association (Association) assigns the highest priority to full compliance with both the letter and the spirit of the antitrust laws. It is thus vital that all meetings, data collection programs and activities of the Association be conducted in a manner consistent with that policy. The Association Production Reporting Program will operate under those guidelines, including the following: Program Summary Data will be collected from concrete producers by an independent accounting firm each year (for the immediate past year) that will include: Total Concrete Production Concrete Production for Commercial Projects Concrete Production for Residential Projects Concrete Production for Non-Building Projects A report will be produced by the independent auditing firm that will include the following aggregated data for all reporting companies: Total Concrete Production Concrete Production for Commercial Projects Concrete Production for Residential Projects Concrete Production for Non-Building Projects Total production and production for each application will be determined by the independent accounting firm using data collected by the survey. Participants shall not discuss the reported estimate or numerical components of the estimate among themselves at any time, although each participant is free to raise questions or concerns directly with the Association or the independent accounting firm. Confidentiality and Disclosure Policy Data collected is held strictly CONFIDENTIAL by the independent accounting firm. No individual participants data is revealed to anyone other than the staff of the independent accounting firm. It will not be possible for any individual companys data or trends to be identified except by the reporting company. If broad aggregation of results is not possible, due to limited response to a particular question, no data results will be reported for that question. Specifically, where only 1 or 2 companies report in any one reporting category in a given year, results shall not be released under any circumstances. Where 3 or 4 companies report in a given year and one participant has a market share or 40% or more in any given category, results shall not be disseminated for that category. Agreements among competitors that unreasonably restrain or limit competition are unlawful under the antitrust laws and violators are subject to criminal fines and incarceration, civil fines and private treble damage actions. Examples of such illegal agreements by competitors are agreements to fix or stabilize prices, agreements to allocate territories or customers, and agreements to limit production or output. Accordingly, it is improper for competitors to discuss at Association meetings or activities, or otherwise, the subjects of prices, terms and conditions of sale, markets, individual customers, individual company costs and other elements or factors that may affect competition. In addition, participants shall not discuss among themselves at any time what the reported data might "mean" in commercial terms; the practical interpretation of reporting results must be left to the independent determination of each participant. Adopted by the HRRMCA Board of Directors, January 1, 2007.

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Sample Production Survey Basic

HARD ROCK READY MIXED CONCRETE ASSOCIATION 2006 PRODUCTION REPORTING SURVEY PLEASE COMPLETE AND RETURN BY FEBRUARY 15, 2007, TO: Cal Q. Later, CPA Cal Q. Later and Partners 555 Main Street Hard Rock, USA 55555

Please report Total Concrete Production and concrete production for the defined Project Types. Report on concrete delivered within the physical boundaries of Hard Rock (Survey Area) for the period January 1, 2006 - December 31, 2006 (Survey Period). Please read the Survey Instructions and Definitions before completing the survey. NAME OF COMPANY: TOTAL CONCRETE PRODUCTION: Concrete Production for COMMERCIAL PROJECTS: Concrete Production for RESIDENTIAL PROJECTS: Concrete Production for NON-BUILDING PROJECTS: Concrete Production for OTHER PROJECTS: PLEASE DESCRIBE: NOTE: The total of line 2 through 5 should equal line 1. DATE: Signed By: Company Representative Print Name: All information reported by you to Cal Q. Later and Partners will be held by in the strictest confidence in accordance the HRRMCA Production Reporting Antitrust Policy. CY CY CY CY CY

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Sample Production Survey Detailed

HARD ROCK READY MIXED CONCRETE ASSOCIATION 2006 PRODUCTION REPORTING SURVEY PLEASE COMPLETE AND RETURN BY FEBRUARY 15, 2007, TO: Cal Q. Later, CPA Cal Q. Later and Partners 555 Main Street Hard Rock, USA 55555

Please report Total Concrete Production and Concrete Production for the defined Project Types and Applications. Report on concrete delivered within the physical boundaries of Hard Rock (Survey Area) for the period January 1, 2006 - December 31, 2006 (Survey Period). Please read the Survey Instructions and Definitions before completing the survey. NAME OF COMPANY: TOTAL CONCRETE PRODUCTION: Concrete Production for COMMERCIAL PROJECTS: Commercial Tilt-up Walls Commercial Parking Lots Commercial Other Applications NOTE: Total of a through c should equal line 2. Concrete Production for RESIDENTIAL PROJECTS: Residential Above-Grade Walls Residential Parking Lots Residential Other Applications NOTE: Total of a through c should equal line 3. Concrete Production for NON-BUILDING PROJECTS: Non-Building Parking Lots Flowable Fill Non-Building Other Applications NOTE: Total of a through c should equal line 4. Concrete Production for OTHER PROJECTS: Please describe: NOTE: Total of lines 2, 3, 4 and 5 should equal line 1. DATE: Signed By: Company Representative Print Name: All information reported by you to Cal Q. Later and Partners will be will be held by in the strictest confidence in accordance the HRRMCA Production Reporting Antitrust Policy. CY CY CY CY CY CY CY CY CY CY CY CY CY CY

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Sample Survey Instruction and Definitions

HARD ROCK READY MIXED CONCRETE ASSOCIATION SURVEY INSTRUCTIONS AND DEFINITIONS Please report Total Concrete Production and concrete production for the defined Project Types and Applications. Report on concrete delivered within the physical boundaries of Hard Rock (Survey Area) for the period January 1, 2006 - December 31, 2006 (Survey Period). Total Concrete Production Total Concrete Production is defined as the total number of cubic yards of concrete a company delivered within the Survey Area during the Survey Period for all Project Types. Project Types and Applications Commercial Projects Commercial Projects include office buildings, banks, stores, shopping centers and malls, restaurants, service stations, parking garages, high rise buildings, warehouses, manufacturing plants, freight terminals, schools and other educational facilities, dormitories, theaters, libraries, churches, hospitals, prisons, post offices and government office buildings. They also include agricultural applications such as barns, silos, machinery sheds, crop, silage and manure storage facilities. They also include assisted living facilities, nursing homes, hotels and motels as well as any multi-family dwellings that are four stories or higher. Participants should include all concrete supplied for supporting and enclosing the structures and the floors and walls (above and below grade), tiltup walls, ICF walls, columns and beams. It also includes exterior site work such as curb and gutter, driveways, aprons, truck pads, other pavements, parking lots and sidewalks. Commercial Tilt-up Walls Includes only the concrete supplied for the tilt-up walls. Do not include concrete supplied for footings and floor slabs or any concrete supplied for applications outside the building envelope. Commercial Parking Lots Includes concrete parking areas, driveways, entrances and other site paving. This includes both plain and pervious concrete. Residential Projects Residential Projects include all single and multi-family dwellings under four stories. It includes all concrete supplied for supporting and enclosing the structures, including floors and walls (above and below grade), crawl spaces and basements plus exterior site work such as curb and gutter, parking lots, driveways, patios, pools and pool decks, sidewalks, porches and stoops. Residential Above-Grade Walls Includes concrete placed into above-grade insulating concrete forms (ICFs), removable forms or tilt-up walls on Residential Projects. Residential Parking Lots Includes parking areas serving more than two dwellings. Include concrete parking areas, driveways, entrances and other site paving. This includes both plain and pervious concrete. Non-Building Projects Non-Building Projects include all Project Types not included in Commercial Projects and Residential Projects. Non-Building Projects include water treatment plants, wastewater and storm water treatment plants, bridges, pilings and caissons, grout, engineered fill and flowable fill, shotcrete, tunnels, transit facilities, stadiums and other non-building recreational facilities, highways, streets and local roads, intersections and roundabouts, median strips, median and sound barriers, dams, underground utilities, airport runways, taxiways and aprons. Include all concrete supplied to build the structure and exterior site work such as curb and gutter, driveways, aprons, truck pads, other pavements, parking lots and sidewalks. Non-Building Parking Lots Includes concrete parking areas, driveways, entrances and other site paving. This includes both plain and pervious concrete. Flowable Fill Self leveling and self compacting, cementitious material with an unconfined compressive strength of 1200 psi or less. Flowable Fill is primarily used as a backfill material in lieu of compacted granular fill. Other Projects Includes all other projects not included in Commercial Projects, Residential Projects or NonBuilding Projects. Other Applications Include all other applications within a Project Type not specifically reported on or defined in the survey.

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Sample Production Report

HARD ROCK READY MIXED CONCRETE ASSOCIATION 2006 PRODUCTION REPORT ALL COMPANIES REPORTED DATA
2006 & 2005 Comparison Cubic Yards% Change 20062005COMMERCIAL PROJECTS1,566,000 1,459,000 7.3% Commercial Tilt-up Walls210,000 180,00016.7% Commercial Parking Lots153,000 171,000-10.5% Commercial Other Applications1,003,000 997,0000.6% RESIDENTIAL PROJECTS2,011,000 2,005,0000.1% Residential AboveGrade Walls56,000 48,00016.7% Residential Parking Lots75,000 69,0008.7% Residential Other Applications1,880,000 1,888,000-0.4% NON-BUILDING PROJECTS1,345,000 1,245,0008.0% NonBuilding Parking Lots 125,000 123,0001.6% Flowable Fill 65,000 74,000-12.2% Non-Building Other Applications945,000 1,002,000-5.7% OTHER PROJECTS234,000 325,000-28.0%TOTAL CONCRETE PRODUCTION5,156,000 5,034,0002.4% Notes: Subcategories may not add to category totals because some reporting companies did not report subcategories. Total number of companies reporting in 2006 - 21 Total number of companies reporting in 2005 19

Page 1 of 2

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Sample Production Report (continued)

HARD ROCK READY MIXED CONCRETE ASSOCIATION 2006 PRODUCTION REPORT

CORE COMPANIES REPORTED DATA 2006 & 2005 Comparison Cubic Yards% Change 20062005COMMERCIAL PROJECTS (13 companies)1,233,000 1,143,0007.8% Commercial Tilt-up Walls (11 companies)156,000 149,0004.7% Commercial Parking Lots (10 companies)142,000 139,0002.2% Commercial Other Applications (13 companies)846,000 789,0007.2% RESIDENTIAL PROJECTS (14 companies)1,679,000 1,683,000-0.2% Residential Above-Grade Walls (9 companies)36,000 35,0002.9% Residential Parking Lots (7 companies)64,000 54,00018.5% Residential Other Applications (14 companies)1,393,000 1,496,000-6.9% NON-BUILDING PROJECTS (16 companies)1,084,000 1,033,0004.9% Non-Building Parking Lots (12 companies) 96,000 96,0000.0% Flowable Fill (16 companies) 55,000 54,0001.9% Non-Building Other Applications (16 companies)756,000 761,000-0.7% OTHER PROJECTS (16 companies)221,000 219,0000.9%TOTAL CONCRETE PRODUCTION (12 companies)4,231,000 4,201,0000.7% Notes: Core reported data only includes production from a core group of producers that have consistently reported in a specific category. Subcategories may not add to category totals because some reporting companies did not report subcategories.

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