Gallagher Asphalt, a family-owned company founded in 1928 by James F. Gallagher, Sr., and now in its third generation of management, has demonstrated how strategic plant upgrades can transform a production facility. Operating three plants in Thornton, Joliet, and Bourbonnais, Illinois, the company produces between 600,000 and 1,000,000 tons of asphalt annually across more than 3,000 square miles of the south Chicago suburban region. The company’s flagship Thornton facility recently underwent a comprehensive modernization program that offers valuable lessons for any asphalt producer. Using Plant Downtime to Improve Asphalt Plant Uptime provides additional perspective on maximizing production availability during upgrade cycles.
The Business Case for Plant Upgrades in Asphalt Production
Gallagher Asphalt operates in a market where quality specifications are becoming increasingly demanding. Illinois has been specifying more jobs using Percent Within Limits (PWL) specifications, meaning producers are paid according to test results rather than simply meeting minimum thresholds. As Jim Trost, vice president of operations at Gallagher Asphalt, explains, consistency is critical under PWL contracting. Producers must deliver mix that hits target values consistently, or face financial penalties. This shift toward performance-based specifications is driving asphalt producers across the industry to evaluate their plant equipment and processes more rigorously than ever before.
Why Gallagher Invested in Plant Modernization
The upgrades at Gallagher’s Thornton facility were driven by three interconnected goals: improving product quality, reducing operating costs, and enhancing safety. Trost notes that the company tries to keep its plants equipped with the latest technology where it provides tangible benefits. The upgrades completed over the winter addressed all three objectives simultaneously, which is a hallmark of well-planned plant modernization programs. Each equipment investment had to demonstrate clear returns in at least one of these areas, and ideally all three.
The Role of PWL Specifications in Driving Quality Investments
Percent Within Limits specifications change the economic equation for asphalt producers. Under traditional systems, material meeting minimum requirements is acceptable with little incentive for tight variability. Under PWL, consistency directly affects revenue. This has forced producers to invest in equipment that delivers repeatable results batch after batch. Gallagher’s upgrades to screening, material handling, and burner controls contribute to tighter production control, which translates to improved PWL performance.
The Maxam Transporter: Eliminating Legacy Conveyor Systems
One of the most significant upgrades at the Thornton facility was the installation of the Maxam Transporter bin top conveying system, introduced at World of Asphalt in 2012. Gallagher’s system is one of only two such installations in the United States, and it was customized specifically for the Thornton plant’s configuration. The Transporter represents a fundamental rethinking of how material moves from the production process into storage silos.
How the Transporter System Works
The Transporter uses a stationary batcher fixed to the main drag slat conveyor. As it fills, a limit switch opens its gate to discharge material into a mobile batcher riding on rails. When empty, the gate closes and the mobile batcher travels to the selected bin. The bin top seal opens to accept delivery. Once the system confirms correct positioning, the batcher gate opens and discharges into the silo. The mobile batcher then returns for the next load.
Measurable Cost Savings from Conveyor Elimination
The results of this installation have been impressive. Steve Caraway, plant manager at Gallagher Asphalt, reports that the new system eliminated four existing 600-tph transfer conveyors, four diverter gates, and five silo batchers. The maintenance savings alone are substantial. The company no longer has to maintain or replace chains, slats, sprockets, floors, divert gates, actuators, and all the other wear parts associated with traditional drag conveyor systems. The expected annual maintenance savings is approximately $20,000. Additionally, the reduced number of drive motors and the elimination of transfer conveyor heating will save about $14,000 per year in electrical costs. The Transporter also generates electricity approximately 50 percent of the time during the braking phase of operation, further reducing the facility’s energy footprint. For both the stationary and mobile batchers, each features a 6-ton capacity, and the facility now operates with six storage silos. Producers considering similar material handling upgrades should also review Upgrading Asphalt Plant Drum Systems Lessons From Vulcan for additional insights on system-level modernization approaches.
RAP Processing Upgrades: Screening and Material Handling Improvements
Gallagher Asphalt has long emphasized environmental stewardship through innovative asphalt recycling processes in both its paving and production practices. The Thornton facility’s new dual high-frequency RAP screening system, manufactured by Inertia Machine Corp., paired with a Telestacking conveyor from Thor Global Enterprises, represents a significant leap forward in the company’s ability to process reclaimed asphalt pavement efficiently and consistently.
Screening System Specifications and Capabilities
The new screening system features twin double-screen decks and produces two product sizes: 3/16-inch minus (fine) and 1/2-inch by 3/16-inch (coarse). The screener produces 300 to 325 tons per hour of combined finished product. After separation, the fine material feeds to the automated telestacking conveyor, which moves back and forth to evenly distribute material while building the stockpile. This approach limits segregation and eliminates the need for rehandling with a wheel loader, saving both time and equipment operating costs.
Environmental and Operational Benefits
Trost notes that the new screening system improves consistency and creates less waste compared to the previous setup. An equally important change was switching the crusher power source from diesel to electric. The asphalt plant environment is notoriously hard on diesel engines due to dust, heat, and continuous operation. The switch to electric power has delivered multiple benefits: reduced fuel and power costs, labor savings from eliminated refueling tasks, less maintenance on the crushing equipment, and a much quieter operation overall. This diesel-to-electric conversion is a trend that more plant operators should evaluate, particularly for stationary equipment that runs for extended periods.
Burner Controls, Energy Savings, and Strategic Planning
Energy efficiency was another major focus of Gallagher’s modernization program. The company implemented advanced burner control systems for the dryer drums in both the HMA and WMA plants. These controls allow individual fine-tuning and optimization of burner operation across the full range of production conditions.
Advanced Burner Control Technology
The advanced burner control systems give operators precise command over combustion parameters, enabling them to optimize fuel usage for whatever mix type and production rate is required. Trost estimates the energy savings from these controls at approximately 5 percent. While that figure may seem modest compared to the headline numbers from the material handling upgrades, burner efficiency improvements apply to every ton of mix produced, making the cumulative savings significant over a production season. The savings have been substantial enough that local utility companies participated in funding the burner controls and Transporter projects through their energy efficiency incentive programs, further improving the return on investment.
Industry Funding Challenges and Federal Support
Despite the clear benefits of these upgrades, funding remains a concern for many asphalt producers. The recently passed federal highway bill provides some stability with six-year funding at the federal level, but as Dan Gallagher, one of the principal owners of the company alongside Charlie and Patrick Gallagher, points out, state-level capital investment is equally critical. Illinois has not passed a substantial capital bill, leaving uncertainty about the long-term market. The company also notes that the industry still faces overcapacity coming out of the Great Recession, which limits growth opportunities other than through acquisitions.
Workforce Development and the Next Generation
Like many construction material producers, Gallagher Asphalt faces the challenge of finding qualified people who fit within the company’s culture. Well-paid union workers in the area help mitigate this issue somewhat, but recruiting remains difficult. The fourth generation of Gallaghers is now entering the business, and attracting quality workers is a top priority. The company operates an internship program that serves a dual purpose: exposing potential employees to the asphalt industry while allowing the company to evaluate candidates for cultural fit. Producers should note that plant modernization and workforce development go hand in hand. Modern equipment with advanced controls can make the industry more appealing to younger workers who are comfortable with technology, helping address the labor challenge while improving production capability. For a broader look at preparing plants for quality production before the paving season begins, Preconstruction Strategies to Improve Asphalt Mat Quality Before offers complementary insights.
Quality Assurance and Industry Recognition
Gallagher Asphalt’s commitment to quality extends beyond its production equipment. The company owns Chicago Testing Laboratory (CTL), which operates five office locations including one at the Thornton production facility. CTL provides testing and inspection services for a wide range of construction materials including asphalt and asphalt materials, liquids, aggregates, concrete, and soils. The lab also offers consulting services in geotechnical engineering, construction inspection, and other specialty areas. CTL serves not only Gallagher’s own quality assurance needs but also contracts with IDOT, the Wisconsin DOT, and other asphalt paving contractors in the region.
NAPA Diamond Commendations
Gallagher Asphalt is the only contractor in Illinois to have received three Diamond Commendations from the National Asphalt Pavement Association (NAPA). These national commendations recognize excellence across multiple dimensions of asphalt plant and paving operations. Producers who are embarking on modernization programs can benchmark their progress against the NAPA Diamond Commendation criteria, which include:
- Proficiency in plant operations and site appearance, including environmental practices, safety, permitting, and regulatory compliance
- Quality of material produced, including quality management systems, RAP and aggregate handling, asphalt storage, drying and mixing, air quality controls, and control room operations
- Professionalism of paving crews, including training programs, use of best practices, and compliance with specifications
Key Upgrade Metrics Summary
| Upgrade Area | Equipment/System | Key Benefit | Annual Savings |
|---|---|---|---|
| Material Handling | Maxam Transporter | Eliminated 4 conveyors, 4 diverter gates, 5 silo batchers | $20,000 maintenance + $14,000 electrical |
| RAP Processing | Inertia dual high-frequency screener + Thor Telestacking conveyor | 300-325 tph capacity, reduced segregation, eliminated rehandling | Operational efficiency + labor savings |
| Crusher Power | Diesel-to-electric conversion | Reduced fuel costs, less maintenance, quieter operation | Fuel + maintenance + labor |
| Burner Controls | Advanced burner control systems | Fine-tuned combustion optimization across full production range | Approximately 5% energy reduction |
| Utility Incentives | Local utility participation | Funding support for Transporter and burner control projects | Reduced capital outlay |
Future Technology Roadmap
Gallagher Asphalt is now incorporating GPS tracking in all its trucks to identify operational inefficiencies and control costs. The next step is to automate log sheets and give plant operators real-time visibility into truck locations and estimated arrival times. This integration between plant operations and fleet management optimizes the entire production-to-paving workflow. For producers developing comprehensive plant improvement strategies, Strategic Asphalt Plant Upgrades Lessons From Oxford Constructions provides valuable perspective on planning similar programs.
The Gallagher Asphalt story demonstrates that strategic plant modernization, when executed with clear objectives around quality, cost, and safety, delivers measurable returns that extend well beyond any single equipment upgrade. By addressing material handling, RAP processing, energy efficiency, and workforce development as interconnected priorities, producers can build production facilities that are not only more competitive today but better positioned to meet the increasingly demanding specifications of tomorrow.