June 2015, Vol. 70, No.6
Editor's Log
Liabilities Of Growth
It’s a great time to be a horizontal directional drilling contractor.
For the most part, markets are stable with a positive outlook for the foreseeable future. This issue contains our exclusive, 17th annual survey of the HDD market from the contractors’ perspective. In general, contractors are optimistic but readily point out challenges and concerns.
One contractor survey respondent from the Northeast believes HDD is more than just a secondary market option; rather, in the correct circumstances, it should be considered the primary option. “If proper planning and tooling is utilized, the HDD industry will thrive. HDD should not be used as another tool in the tool box, but as a means of installing pipelines in those hard to dig areas. Waterways, highly congested roadways and recently reconstructed roads are prime examples.”
HDD is a disruptive technology that has evolved quickly and firmly embedded itself within the underground infrastructure industry. Contractors and manufacturers/suppliers have met many challenges over the past 30 years to reach the stability and market acceptance they enjoy today. But that strong market status comes with responsibilities.
Challenges remain aplenty for the HDD market as it continues to expand its footprint in the pipeline and utilities construction market. Contractors participating in the survey outlined a broad spectrum of concerns and issues ranging from equipment costs to rookie HDD contractors.
“The price of new equipment reflects the prices of HDD work in the 90s,” said a Western state contractor. “We are lucky to get paid half of what it used to pay, so it doesn’t pencil out to pay the prices of new equipment unless you can offset the payments with using other equipment such as plows and trenchers.” Complained this contractor, “An overabundance of inexperienced companies are flooding the market with lowball prices.” Still, most agree the market is a good one.
One of the looming issues the HDD industry must continue to deal with remains cross bores. The good news is that industry is rising to the challenge. While many industry groups are trying to address cross bores, two groups in particular, the Cross Bore Safety Association (CBSA) and the Distribution Contractors Association (DCA), are tackling the issue head on. The CBSA defines a cross bore as “an intersection of an existing underground utility or underground structure by a second utility resulting in direct contact between the transactions of the utilities that compromises the integrity of either utility or underground structure.”
HDD isn’t the only culprit of drilling through an existing utility. Indeed, piercing tools have also been hammering through other utilities lines for decades. Still, it was the raucous performance of HDD during the fiber boom of the 90s and subsequent accidents of the 2000s that have ultimately brought the legacy of cross bores to the public limelight.
The CBSA is assembling a wide array of industry leaders to serve on their board and committees and actively reaching out to industry associations to build consensus best practices and cooperation to prevent future cross bores and deal with legacy issues.
The DCA understands there is a problem but believes cross bores can absolutely be prevented when contractors invest the time and proper inspection procedures both before a bore and post-bore. The association has produced an excellent and well-conceived White Paper on the issue. Further, the group, in conjunction with the American Gas Association, has provided panel presentations/discussions on the issue and other challenges of HDD. Their point – and an excellent one – is that if an owner uses a quality contractor with a well-trained workforce, new cross bores are preventable.
Other HDD issues such as an unskilled workforce, utilities failing to accurately provide locate information, municipalities not willing to participate in One Call, inexperienced companies jumping into the market and buying market share with too-low prices, crowded right-of-ways with poorly documented utilities information, drilling fluid disposal and much more are all challenges that much be overcome by the industry on a daily basis.
Still, these are the challenges of a stable, healthy market. How the industry continues to navigate these sometimes treacherous waters can lay the groundwork for a long-term prosperous future.
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