ASTEC INDUSTRIES, INC. GLYPH<149> VISION 20/20 A New Scientific Approach ASTEC INDUSTRIES: OUR BUSINESS MODEL 6 We believe that the core purpose of our company is to build equipment that will improve the worldGLYPH<146>s infra- structure. Hopefully, the equipment we build will make the world a better place to live. And when we are  gone from this world, we hope we will have left it better than it was when we arrived. Our business philosophy and business model may be old-fashioned but we still believe in the day-to-day  blocking and tackling. We believe in doing a good job, enjoying what we do, and most of all helping the  customer with whatever problem he has, whether it is related to the sale of equipment or not. If this model is correct, then the Astec model is totally wrong. One popular current business model is that of outsourcing. Apply this model to making a product and you  donGLYPH<146>t manufacture anything yourself. You just assemble. You donGLYPH<146>t give much service, eliminate all the  engineers, build simple, non-innovative equipment, and sell cheap while eliminating people and factories. Those of us who have been in business for a while may find it interesting to try and recall all the numerous  management books and management business models that have come and gone over the years. One  only needs to look at the business section in any bookstore to see the number of new offerings. Many of  the new fads, the flavor of the moment, seem to offer some simple solutions for quick success and outdo- ing the competition. Business leaders will merely have to strategize and develop corporate structures that  automatically get the job done without anyone having to get their hands dirty in the details of running a  business. Astec Industries has been an innovator on the equipment side of the equation of supplying our citizens  with quality and safety in roadways. And when it comes to our products we place priority on new and better  technology under proven and not-so-new assumptions. Perpetual pavement is durable and, with proper maintenance, can last indefinitely. These roads will not  come apart as the highways of the past. To maintain surface smoothness, only the surface is renewed  every few years. ThatGLYPH<146>s like the difference between microsurgery and a lengthy, invasive procedure. And to- day virtually all asphalt removed from roadways before resurfacing is being recycled immediately, conserv- ing natural resources and energy. Besides smoothness, these modern pavements also have exceptional  strengths to support heavy loads, and they reduce tire noise by up to seven decibels compared to tradi- tional roads. The increased focus on quality and durability has helped road builders develop the next generation of long- lasting, smooth pavement. Called perpetual pavement, the roadway is constructed in laminated layers with  different types of mix used in each layer to achieve the greatest strength.  In the last few years asphalt roads have increased in smoothness to an amazing degree. Technology such  as the use of lasers on paving machines, new paving techniques using material transfer vehicles, new  laboratory tools that allow research and, finally, better quality control and assurance practices have all  contributed to provide the traveler with a safer, smoother, more pleasant ride. And this new generation of  roadway helps vehicles consume less fuel, and saves on vehicle maintenance cost and tire wear.  We now have technology to predict pavement performance and to employ much more sophisticated mix  design methods. This new technology is catching the attention of more and more states because of the  undeniable benefits it provides. However, things are changing. We know now how to build smooth roads that last virtually forever. Still, this  information doesnGLYPH<146>t often flow freely across state lines from one department of transportation to another.