Chairman Paul M. Henkels authors “Business is More than Making Money.” The article traces the company’s legacy of integrity and commitment to values from its beginnings in 1923 under founder John B. Henkels, Jr.…H&M embarks on a corporate wide safety assessment focusing on the four categories considered to be major elements of a successful safety system: Management Commitment, Line Management/Organization Responsibility, Strategy Support, and Evaluation/Skills Development. The ultimate results of this assessment will establish a roadmap for companywide safety improvement plans…H&M’s OSHA Recordable rate is reduced by 18%...H&M’s West Region earns the company’s President’s Safety Award by virtue of the greatest improvement in OSHA recordable rate compared to the previous year…Creating an Atmosphere of Respect™, a major training initiative focusing on fostering a climate that promotes respect in the workplace, is launched… H&M’s East Region earns this year’s Project Management Excellence Award. The award recognizes a project’s exceptional level of PM Performance, including utilization of H&M’s Project Management Methodologies. The award winning initiative involves the rebuild of a large utility customer’s facility that was ravaged by fire…More than 200 employees enroll in formalized training as part of H&M’s Project Management Challenge (below)… H&M holds its 12^th Supervisor Academy at corporate headquarters in Blue Bell, Pennsylvania. The intensive week-long program provides staff throughout the company with ongoing training on core business principles relative to safety, information management, performance systems, legal, project management, equipment, and financial subject matter. More than 220 employees have participated in the program since its October 2000 inception… H&M is awarded Exelon Corporation’s 2005 Supplier Diversity Award for its joint venture work in supplying Exelon with distribution construction services. The award is in recognition for setting an excellent example of how companies should partner with diversity suppliers to provide exceptional value to their customers.

Storm Restoration
Henkels & McCoy dispatches 786 employees and 445 pieces of equipment in response to the mass devastation (right, left)) caused by Hurricanes Katrina, Rita, and Wilma, which made landfall in the southeastern United States on August 28, September 23, and October 24 respectively... H&M crews travel from as far away as western Pennsylvania to restore essential services while oftentimes sleeping in their trucks due to lack of shelter. H&M employees and the company raise over $230,000 in hurricane relief funds to assist those in need. On September 20, Whitpain Township, Pennsylvania, the location of Henkels & McCoy’s company headquarters, officially recognizes H&M for its restoration efforts during Hurricane Katrina (right).

IN OUR MARKETS...

Electric Power: West Region crews complete a project in record time for Portland General Electric on its Grizzly/Malin 500 kV transmission line, spanning 179 miles. Due to the threat of fire, the project required waivers from the U.S. Department of Agriculture Forest Service and U.S. Department of Interior’s Bureau of Land Management… A 138 kV XLPE cable system is installed for a leading Southern California municipality. Scope includes the removal of the previous configuration’s 4.7 miles of 3-phase, single circuit oil-filled cable with lead sheath. The project’s many challenging aspects include the unique safety precautions associated with removing the oil-filled cable, and the planning required to efficiently execute the project primarily located in heavily trafficked downtown area of a major city…The Central Region’s Florida operation wins a three-year contract with three one-year options for distribution work for a major customer… The southeastern U.S. also provides several additional opportunities related to overhead and underground projects.

Pipeline/Natural Gas: Long-term relationships continue to grow. One, with a major East Region customer, has been in place since 1968. Work scope at present includes installation of new gas mains and services for new business, with inserts and upgrades. The effort involves 2” to 20” steel and plastic gas mains and services, including live gas tie-ins. Gas meter change-outs take place at a pace of approximately 108 per day…The Central Region is in the fifth year of a fifteen-year agreement covering parts of Ohio, Indiana, and Kentucky involving replacement of deteriorated cast iron mains and bare steel gas mains as well as associated restoration services…Our Pipeline Group is involved in numerous interesting projects. One example is an effort in central New Jersey spanning approximately twenty miles. The purpose of this project is the expansion of our customer’s system, gas storage, and supply capabilities and includes three road bores. Two of these were under the New Jersey Turnpike in highly congested areas in proximity to several housing developments. A full time environmental crew is on the project every day throughout.

Communications: H&M’s Central Region installs 126 miles of underground conduit and 82 miles of ADSS aerial fiber as part of new train management and communications systems for the Northern Indiana Commuter Transportation District. The work took place on the famed South Shore Line, a 75.5 mile route between South Bend Airport and Chicago’s Kensington station that traces its beginnings to 1903… Crews work with Canadian National Railway to upgrade its power, signal, and communication network backbone with H&M’s rail plow (right) placing 250 miles of buried duct this year. More than 30,000 feet of rock had to be removed by hydraulic hammers mounted on 300+ hi-rail excavators as part of project scope. This project is also unique in that there are virtually no access roads along the rail…Minnesota, Wisconsin, Illinois, and Canada area offices install hundreds of miles of aerial and buried fiber and copper cable for multiple communications clients…Crews install approximately 1.3 million feet of conduit and fiber cable in the Midwest as part of a FTTX project for a large communications customer…H&M begins an ambitious Broadband Over Power Line project for a Midwest customer. Project involves installation and integration of new equipment with existing power lines in order to enhance Internet service in the Ohio area.

Network Systems & Solutions (now H&M NetWorks): Crews of 100-150 continue work on Wedges 1 and 2 of the Pentagon. The original Pentagon Renovation Program, which began in 1999 in conjunction with General Dynamics and an award for IT renovation of the Pentagon’s Wedge 1, was projected to last until 2011. The full scope, which included installation of voice, data, and video networking, represented the largest single-site structured cabling project in the world. Following the attack on 9/11, H&M was asked to help build temporary office space for displaced workers and reconstruction of Wedge 1 was completed in time for a ceremony one year to the day of the 9/11 attack…Ongoing support is provided at Citizens Bank Park, home of the Philadelphia Phillies. H&M was responsible for the initial cabling of the structure during construction from 2002-2004…Phase 1 of a major build for HealthSouth in Birmingham, Alabama is completed. Teamed with Siemens Communications, H&M’s work includes the design and installation of various systems including voice, data, nurse call, and paging…New customers include Citizens Bank, Granite Telecommunications, Panera Bread, and Ferguson Enterprises.

Engineering: Engineering on a $6.8 million Metro Area Fiber Network in Texas is completed, with construction to follow…Feeder and distribution design is provided for a significant FTTX initiative for a large telecommunications provider…The Engineering Group participates in Duquesne Light Company’s five year program by designing infrastructure improvements to the power distribution system around Pittsburgh.

Last But Not Least: Crews begin Intelligent Transportation System projects in multiple states. Overall scope includes revamping of intersections and installation of new sight lighting, traffic signals, utilities, and multi-duct conduit systems.