I’m finishing up a 3 day training in Sacramento California for Granite Construction. It was interesting to be in California for Election Day. There are crazy politics in California. I’ll leave it at that.
We stopped training for Granite in 2009 and most of 2010 because as a construction company they were hit hard by the economy. Now things are slowly coming back and this last year we started training at Granite again. Granite is an interesting company with smart people and lots of questions. They do a good job with their training programs and the Granite people not only show up for the training on time they come early and ready to go.
Two key numbers for Granite are RONA (return on net assets) and EP (economic profit). As a construction company Granite is very capital intensive so RONA becomes a great metric to measure whether or not they are getting enough out of the assets they use. EP comes from Economic Value Added (EVA) and is a measure of the return a company generates relative to its expected return. The last few years have been tough with regard to these metrics but things are getting better.