Business Background
Owner Background
Mr. Louis W. Chesterfield has been in the crane business since April 1979, starting out as an apprentice crane operator whose duties included crane operating, maintenance, job acquisition and coordination, and account collection for a Northern Idaho steel company, C. C. Iron Company. Mr. Chesterfield joined the union, went through the apprenticeship program and obtained union journeyman crane operator status while at C. C. Iron Company operating this steel company's 18 ton crane and 18 to 45 ton cranes which the company bare leased (leased without an operator). In 1988, Mr. Chesterfield achieved journeyman 10 year status with the union. Ten year status meant that either he was able to solicit his own work or interested companies could call for his services directly without picking the next available person in rotation from the list in the union hall. In 1989, Mr. Chesterfield then moved on to journeyman crane operator with Pikel Crane Services—Northwest Rigging, in Boise, Idaho (an affiliate company of Pikel Financial Corporation), the largest crane service company in the Northwest, operating 18 to 80 ton cranes, and then started CHESTERFIELD CRANE SERVICES on August 1, 1989 with the acquisition of an 18 ton crane. (A resume of Louis W. Chesterfield has been prepared and is available upon request.)
Start-Up, History and Management of Chesterfield Crane Services
In August 1989, CHESTERFIELD CRANE SERVICES commenced operations as a sole proprietorship upon the acquisition of an 18 ton TMS 180 Grov Hydraulic crane.
Management
Management responsibility for the company, both financially and day to day operations, rests with Mr. Louis Chesterfield. (See Owner Background above.)
For day to day bookkeeping requirements, the Company utilizes Wellborn Bookkeeping Services of Boise, Idaho. Further accounting and tax matters are handled through the Accounting Office of Sarah Thomas, CPA, 555 Maria St., Boise, Idaho 89448, phone (555)577-1999. Legal counsel for the Company is Bob L. Meyer, 372 East 2nd Street, Boise, Idaho, 89702, phone (555)572-8079. CHESTERFIELD CRANE SERVICES provides, at hourly rates, a compact crane, a professional operator, and any associated services needed to fulfill the hoisting requirements of the job.
Currently, Mr. Chesterfield is the sole operator. Upon acquisition of a second crane, it is anticipated that Mr. Chesterfield will be the primary crane operator over 90% of the time. When jobs dictate the utilization of both cranes simultaneously, an additional experienced 10 year status journeyman union crane operator will be retained from the union hall on an hourly basis. At this time such additional hourly personnel are paid at the rate of $33.00 per hour (includes wage and union fringe benefits). The crane operator's time is directly related to time that the crane is on the job and on the billing meter.
Except for major engine and major hydraulic repairs, Mr. Chesterfield performs all mechanical, maintenance, and crane repairs.
Initially, presently, and in the foreseeable future, the company services all of Idaho including Boise and surrounding areas.
In addition to steel erection and general hoisting, specialty services include crane services utilized in commercial construction, public works construction, highway construction, heavy equipment installation and removal for the mining and manufacturing industries, custom housing, residential and commercial roof and truss installation, and log home erection.
Initially, the success of CHESTERFELD CRANE SERVICES was based on three factors:
The Market and the Competition
