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7/26/2010

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On-Line Construction Inc.

Mission to Succeed

The team at On-Line Construction, Inc. delivers quality to every job

I know what I do and I’m a pipeline guy,” Dave Stanage states with a thump on his desk. “Phone…cable…storm drains…any pipes or cables going into the ground are my
specialty. I stick to what I do best.”

Giving developers and municipalities his best shot is the mission of Dave Stanage and his company, On-Line Construction, Inc. Stanage says he started the Hot Springs-based company in 2002 after years of “Learning from the big guys, and a lot of prayer.” He and his twin brother, Doug, learned the business from their father, Russ, who retired in 1985 after 35 years in the utilities contracting business. Doug now works as a contractor in Missouri. Russ (“Always a Cat® man!”) still helps Dave out in a pinch. “Dad loves to watch these new Caterpillar® machines run,” says Stanage.

On-Line’s first job involved the rebuilding of a water pump at the water treatment plant in Benton, Ark. Stanage says he started out with a pickup truck and a toolbox and, after that first job, knew he would start investing in a fleet of Cat equipment. He met up with Riggs CAT Sales Manager, Lee Holstead (now Riggs CAT Product Support Sales Manager), who helped Stanage secure financing for a Cat 320C L Hydraulic Excavator.

“Well, it wasn’t long before I needed to backfill, of course,” recalls Stanage. “Lee put a D4C XL on the same note. From there we just rolled along, started to get some bonding and do some real work, and have done excellent ever since. Now the work is coming to me through word of mouth.”

Stanage and his crew of five cover all of Arkansas, though focusing primarily on a 75-mile radius of Hot Springs. In addition to public works projects such as sewer treatment plants, On-Line concentrates on the residential subdivision market. Currently the company is completing work on a luxury development near Hot Springs called Eagle Rock which consists of 89 lots for custom-built homes.

Resale and Service
To manage the workload, Stanage relies on the durability of Cat Equipment and the stellar service and support he receives from the expert personnel at Riggs CAT. Today his Cat fleet includes two 416D and one 420D Backhoe Loaders, a D4C XL Track-Type Tractor and the 320C L Hydraulic Excavator. He often works with The Cat Rental Store for machines, such as soil compactors or Cat Mini Hydraulic Excavators, that he may need on a one-month rental. Stanage also often rents Cat Work Tools or allied work tools needed for the short term. Much of his equipment has been acquired using a rental purchase option (RPO).

Stanage says there are two major reasons he keeps coming back to Caterpillar. “First, the resale on my Cat machines has always held up. Second, Riggs CAT has the best service technicians in the business,” he says. “I mean, these are real technicians. They know what they’re doing — and I’m a sponge, just soaking up all the information they can give me.”

All Cat, All the Time
While Stanage says, “If it’s Cat Yellow, I’ll own it,” every piece of Cat equipment he owns contributes mightily to On-Line Construction’s bottom line. He says the core of his operation are the two 416D Backhoe Loaders.

“They are the perfect machine to me,” he says. “They fit into tight spots and they can dig like a big excavator and haul like a loader. They are extremely versatile on any jobsite. The 416D machines are the backbone of my business.” He also purchased the larger 420D Backhoe Loader with an extendible stick option for greater reach and digging depth, and the all-wheel drive option for traction and speed. He interchanges his buckets and forks between the three backhoe loaders and often uses hydraulic hammers and compactors.

On-Line uses the D4C XL Track-Type Tractor for clearing job sites all the way to finish grading. “That Hystat transmission is so responsive. It really helps us do a precision job of grading.” Stanage says he’s been looking closely at a new D5G model available now with the optional AccuGrade® GPS or Laser Grade systems for added accuracy and job cost savings.

The first Cat machine he acquired when starting up his excavation business was the 320C L Hydraulic Excavator. He says the remarkable aspect of this machine is the hydraulics. “They are just above and beyond anything else on the market,” he says. “This machine is as fast as a backhoe loader. The hydraulic cycle times are as fast and smooth as any I’ve ever run. And, it’ll maneuver through some pretty tight spots.”

Stanage says his clients appreciate seeing
a bright Cat Yellow fleet on the job. “Developers recognize quality, both in machines and in a job well done. The way to succeed in this business is to give every customer extra personal attention. You’ve got to be knowledgeable and give them a quality, honest job.”

Stanage and his wife of 35 years, Patsy, created a mission statement when On-Line Construction started up a few years ago. “Basically, it says, as we are blessed we want to be a channel in which we can be a blessing to others. Also, we have some great employees that help in On-Line’s suceess with their quality-conscious work.

“Like I said, I’m sticking with what I know — utility work. I give my customers the quality they demand, just like I demand quality out of Caterpillar.”

“First, the resale on my Cat machines has always held up. Second, Riggs CAT has the best service technicians in the business.”
— Dave Stanage,
On-Line Construction, Inc.

Company Profile
On-Line Construction, Inc.,
Hot Springs, Ark.
Principal: Dave Stanage
Applications: Commercial, residential site preparation, municipal public works projects
Cat Fleet: two 416D and one 420D Backhoe Loaders; D4C XL Track-Type Tractor; 320C L Hydraulic Excavator
Cat Dealer: Riggs CAT